Which statement about residuals plot is true?
I. A curved pattern indicates nonlinear association between the variables.
II. A pattern of increasing spread indicates the predicted values become less reliable as the explanatory variable increases.
III. If all of the residuals are very small, the model will predict accurately.
A) I only
B) II only
C) I and II
D) I and III
E) I, II and III

Question

Quizplus · Accepted Answer

Statement I is true because a curved pattern indicates that the relationship between the variables is not linear. Statement II is also true because increasing spread of residuals indicates that the variability of the dependent variable is not constant across values of the independent variable, making the predicted values less reliable. Statement III is false because even if all residuals are small, the model may not predict accurately if it is not a good fit for the data.

Which Statement About Residuals Plot Is True