Re-Express Data to Make Them Appropriate for Use with a Linear

Multiple Choice

Re-express data to make them appropriate for use with a linear model
-Data on labor productivity and unit labor costs were obtained for the retail industry
From 1987 through 2006 (Bureau of Labor Statistics) . A regression was estimated to
Describe the linear relationship between the two variables. Below is the plot of residuals
Versus predicted values. Which of the following re-expression of the data would be
Appropriate?

A) Square the data values.
B) Cube the data values.
C) Use a logarithmic transformation.
D) Use a geometric transformation.
E) The data should not be transformed.