A Residual Analysis Results in the Finding That There Are

Multiple Choice

A residual analysis results in the finding that there are many residuals clustered closely around 0, but there is also some predicted values that have very large (>0) residuals and some that have very small (<0) residuals.This may indicate that ________________________ .

A) there are groups that should be analyzed separately
B) a linear model is not appropriate for this data
C) there is a positive autocorrelation.
D) a transformation is necessary.
E) the regression model is providing good estimates.