Determine When a Linear Model Is Appropriate for Data

Multiple Choice

Determine when a linear model is appropriate for data.
-A regression model was developed relating average annual pay to the percentage of
Women employed for a sample of companies. Below is the plot of residuals versus
Predicted values. What does the plot of residuals suggest?

A) An outlier is present in the data set.
B) The linearity condition is not satisfied.
C) A high leverage point is present in the data set.
D) The equal spread condition is not satisfied.
E) The data are not normal.