The Eye test is used to
A)test for the inclusion of higher-order polynomials.
B)test for choosing between non-nested models.
C)critically assess the regression results instead of taking all results at face value.
D)test for omitted variable bias.

Question

Quizplus · Accepted Answer

The Eye test is used to critically assess the regression results instead of taking all results at face value. It involves plotting the residuals against the predicted values to identify any patterns or outliers, which can help determine if there are any issues with the regression model such as nonlinearity, heteroscedasticity, or influential observations. It does not specifically test for higher-order polynomials, choosing between non-nested models, or omitted variable bias.

The Eye Test Is Used to