Quarterly Figures for E-Commerce Retail Sales Were Obtained from the First

Multiple Choice

Quarterly figures for e-commerce retail sales were obtained from the first quarter of 2009 through the fourth quarter of 2015. A regression model was estimated to describe the trend in e-commerce retail sales over time. What does the plot of residuals versus predicted values suggest?

A) The relationship seems reasonably straight.
B) There is no reason to be alert for autocorrelation.
C) The Equal Spread condition is satisfied.
D) The Linearity condition is satisfied.
E) The Linearity condition is not satisfied, and the Equal Spread condition is not satisfied as well.