To check out whether the regressions assumption involving normality of the error terms (residuals), it is appropriate to construct a normal probability plot. If this plot forms a straight line from the lower left-hand corner to the upper right-hand corner, the error terms may be assumed to be normally distributed.

Question

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A straight line on a normal probability plot indicates that the error terms are normally distributed, which is one of the assumptions of regression analysis.

To Check Out Whether the Regressions Assumption Involving Normality of the Error