A final step in regression analysis is an examination of the residuals in a residual plot. This allows you to test the assumptions of the regression model itself by looking for patterns in the residuals. The residual plot for the problem is as follows: FIGURE. RESIDUAL PLOT FOR U.S. DEPARTMENT OF TRANSPORATION PROBLEM Percent Under 21 Residual Plot 2 1.5 1 0.5 半 to 16 10 12 14 18 20 -0.5 -1 -1.5 Percent under 21 Which statement offers the best interpretation of the residual plot? O It appears that the residual plot exhibits a pattern whereby a linear model may not be adequate or the best fit, indicating that an assumption of the linear model may have been violated. O It appears that the residual plot exhibits a good pattern of constant variance, indicating that the equal variance assumption of the model is supported. aEcumption of the model is not supported. Residuals -00
A final step in regression analysis is an examination of the residuals in a residual plot. This allows you to test the assumptions of the regression model itself by looking for patterns in the residuals. The residual plot for the problem is as follows: FIGURE. RESIDUAL PLOT FOR U.S. DEPARTMENT OF TRANSPORATION PROBLEM Percent Under 21 Residual Plot 2 1.5 1 0.5 半 to 16 10 12 14 18 20 -0.5 -1 -1.5 Percent under 21 Which statement offers the best interpretation of the residual plot? O It appears that the residual plot exhibits a pattern whereby a linear model may not be adequate or the best fit, indicating that an assumption of the linear model may have been violated. O It appears that the residual plot exhibits a good pattern of constant variance, indicating that the equal variance assumption of the model is supported. aEcumption of the model is not supported. Residuals -00
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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