In a multiple regression model, if the residuals have a constant variance, which of the following should be evident?
A) The residual mean should be close to 0, and the residual standard deviation should be close to 1.0.
B) The plot of residuals against each independent variable should show that the spread in the residuals is about the same at all levels of the independent variables.
C) The residuals should have a variance equal to 0 for all levels of the independent variable.

Question

Quizplus · Accepted Answer

If the residuals have a constant variance, it means that there is no heteroscedasticity in the model. In other words, the spread of the residuals should be about the same at all levels of the independent variables. This can be checked by plotting the residuals against each independent variable. Option A is not necessarily true, as the mean and standard deviation of the residuals can vary depending on the characteristics of the data. Option C is not true, as the residuals should have a non-zero variance.

In a Multiple Regression Model, If the Residuals Have a Constant