When using a plot of residuals (y-axis) vs.fitted value of the dependent variable, a plot with no pattern indicates that the:
A)nearly normal condition is satisfied.
B)nearly normal condition is not satisfied.
C)equal spread condition is satisfied.
D)linearity condition is not satisfied.
E)independence condition is not satisfied.

Question

Quizplus · Accepted Answer

A plot of residuals vs. fitted values with no apparent pattern typically indicates that the equal spread condition (homoscedasticity) is satisfied. This means the variance of the error terms is constant across all levels of the independent variables.

When Using a Plot of Residuals (Y-Axis) Vs