The following residuals plot indicates _______________.
A) a nonlinear relation
B) a nonconstant error variance
C) the simple regression assumptions are met
D) the sample is biased
E) the sample is random

Question

The following residuals plot indicates _______________. 
A) a nonlinear relation 
B) a nonconstant error variance 
C) the simple regression assumptions are met 
D) the sample is biased 
E) the sample is random

Quizplus · Accepted Answer

The residuals plot shows a pattern of increasing spread as x increases or decreases, indicating heteroscedasticity or nonconstant error variance. Therefore, choice B is the correct answer. The plot does not provide evidence of nonlinearity or bias in the sample. The simple regression assumptions may or may not be met, but the plot alone does not provide enough information to make that determination. The plot also does not provide information on the randomness of the sample.

The Following Residuals Plot Indicates _______________