Suppose that the following model was fit to a set of data.
The corresponding plot if residuals against predicted values is shown. Interpret the plot.
A) The residuals appear to be randomly scattered so that no model modifications are necessary.
B) It appears that the variance ofε is not constant.
C) It appears that the data contain an outlier.
D) It appears that a quadratic model would be a better fit.
Correct Answer:
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