Consider the following to answer the question(s) below:
Consider the following scatter diagram for 24 of the top grossing movies of all time. The data include the highest grossing films for which world box office receipts and budgets were available. The top two were Avatar and Titanic.
-What does the plot of the residuals and the fitted values suggest?
A) The Equal Variance assumption is not satisfied.
B) The plot does not contain any evident outliers.
C) The Linearity condition is not satisfied.
D) There may be autocorrelation.
E) The plot does not fan out. Thus, the Equal Spread condition is satisfied.

Question

Consider the following to answer the question(s) below:
Consider the following scatter diagram for 24 of the top grossing movies of all time. The data include the highest grossing films for which world box office receipts and budgets were available. The top two were Avatar and Titanic.  
-What does the plot of the residuals and the fitted values suggest?
A) The Equal Variance assumption is not satisfied. 
B) The plot does not contain any evident outliers. 
C) The Linearity condition is not satisfied. 
D) There may be autocorrelation. 
E) The plot does not fan out. Thus, the Equal Spread condition is satisfied.

Quizplus · Accepted Answer

The plot of residuals against fitted values showing a pattern or fanning out suggests that the Equal Variance (homoscedasticity) assumption is not satisfied.

Consider the Following to Answer the Question(s) Below