Based on the following residual plot, which condition / assumption for linear regression is not satisfied?
A)Linearity.
B)Quantitative Variables.
C)Equal Spread.
D)Outlier.
E)None of the above; all conditions are satisfied.

Question

Based on the following residual plot, which condition / assumption for linear regression is not satisfied? 
A)Linearity. 
B)Quantitative Variables. 
C)Equal Spread. 
D)Outlier. 
E)None of the above; all conditions are satisfied.

Quizplus · Accepted Answer

The residual plot shows that there is not an equal spread of residuals across all predicted values. There are larger residuals for smaller predicted values and smaller residuals for larger predicted values. This violates the assumption of equal spread, also known as homoscedasticity.

Based on the Following Residual Plot, Which Condition / Assumption