What is a clear indicator of non-constant variance in a plot of regression model residuals?
A) A non-linear trend in the residual plot.
B) An intercept standard error larger that the estimated intercept coefficient.
C) A funnel shaped trend in the residual plot.
D) The standard errors from each independent variable differ.

Question

Quizplus · Accepted Answer

A funnel-shaped trend in a residual plot indicates non-constant variance, as the spread of the residuals widens or narrows as the predicted values increase or decrease. A non-linear trend or difference in standard errors does not necessarily indicate non-constant variance. The intercept standard error is relevant to the overall significance of the model, but not specifically to variance.

What Is a Clear Indicator of Non-Constant Variance in a Plot