Which Statement About Residuals Plot Is True

Multiple Choice

Which statement about residuals plot is true?
I. A curved pattern indicates nonlinear association between the variables.
II. A pattern of increasing spread indicates the predicted values become less reliable as the explanatory variable increases.
III. If all of the residuals are very small, the model will predict accurately.

A) I only
B) II only
C) I and II
D) I and III
E) I, II and III