Multiple Choice
Consider the following to answer the question(s) below:
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) The plot of residuals shows no unusual pattern. The Equal Variance assumption is satisfied.
B) The plot of residuals has no particular structure. So, the Equal Spread condition is definitely satisfied.
C) The spread in the residuals decreases as the fitted value increases.
D) The residuals show that the plot thickens. The spread in the residuals increases as the fitted value increases. The equal spread condition is not satisfied.
E) The spread in the residuals remains unchanged as the fitted value increases. The Equal Spread condition is satisfied.
Correct Answer:

Verified
Correct Answer:
Verified
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