A residual analysis results in the finding that there are many residuals clustered closely around 0, but there is also some predicted values that have very large (0) residuals and some that have very small (

Question

A residual analysis results in the finding that there are many residuals clustered closely around 0, but there is also some predicted values that have very large (>0) residuals and some that have very small (<0) residuals.This may indicate that ________________________ .
A)there are groups that should be analyzed separately
B)a linear model is not appropriate for this data
C)there is a positive autocorrelation.
D)a transformation is necessary.
E)the regression model is providing good estimates.

Quizplus · Accepted Answer

The presence of residuals clustered around 0 with some large positive and negative residuals suggests that there may be subgroups within the data that behave differently, indicating that separate analysis for these groups might be necessary.

A Residual Analysis Results in the Finding That There Are