The following residuals plot indicates ___.
A)a nonlinear relation
B)a nonconstant error variance
C)the simple regression assumptions are met
D)the sample is biased
E)the sample is random

Question

The following residuals plot indicates ___. 
A)a nonlinear relation 
B)a nonconstant error variance 
C)the simple regression assumptions are met 
D)the sample is biased 
E)the sample is random

Quizplus · Accepted Answer

The residuals plot shows a funnel shape, which suggests that the variability of the errors is increasing as the predicted values increase. This violates the assumption of a constant error variance, also known as homoscedasticity. Therefore, choice B is the best answer.

The Following Residuals Plot Indicates ___