Quarterly figures for e-commerce retail sales were obtained from the first quarter of 2001 through the fourth quarter of 2007. A regression model was estimated to describe the trend in e-commerce retail sales over time. What does the plot of residuals versus predicted values suggest?
A) The data are not normal.
B) The linearity condition is not satisfied.
C) The equal spread condition is not satisfied.
D) The data are not normal, and the linearity condition is not satisfied.
E) The linearity condition is not satisfied, and the equal spread condition is not satisfied.

Question

Quarterly figures for e-commerce retail sales were obtained from the first quarter of 2001 through the fourth quarter of 2007. A regression model was estimated to describe the trend in e-commerce retail sales over time. What does the plot of residuals versus predicted values suggest? 
A) The data are not normal. 
B) The linearity condition is not satisfied. 
C) The equal spread condition is not satisfied. 
D) The data are not normal, and the linearity condition is not satisfied. 
E) The linearity condition is not satisfied, and the equal spread condition is not satisfied.

Quizplus · Accepted Answer

The Answer of Quarterly figures for e-commerce retail sales were obtained from the first quarter of 2001 through the fourth quarter of 2007. A regression model was estimated to describe the trend in e-commerce retail sales over time. What does the plot of residuals versus predicted values suggest? 
A) The data are not normal. 
B) The linearity condition is not satisfied. 
C) The equal spread condition is not satisfied. 
D) The data are not normal, and the linearity condition is not satisfied. 
E) The linearity condition is not satisfied, and the equal spread condition is not satisfied.

Quarterly Figures for E-Commerce Retail Sales Were Obtained from the First