Chapter 12, Problem 8PT

To determine

To find: one of the following statements is assisted by the graph below.

Answer to Problem 8PT

For two players, the regression Line underpredicts their total winnings by more than $800,000.

Explanation of Solution

Given:

  

  

(A) Not assisted, as the vertical distribution between points in the residual plot does not tend to adjust with the horizontal axis differential values.

(B) Not assisted, the sum of the residuals can be 0, this cannot be calculated from a residual map.

(C) Not supported, as residuals greater than 200.000 are available.

(D) Assisted, as the residual plot has two points with a value on the vertical axis of more than 800.000.

(E) Unsupported, the direction (positive or negative) of a residual plot correlation cannot be calculated.

Hence, the correct option is (d)