The following scatter chart would help conclude that:
A) the model is time-invariant.
B) the model captures the relationship between the variables accurately.
C) the residuals are interdependent.
D) the residuals are normally distribute

Question

The following scatter chart would help conclude that: 
A) the model is time-invariant. 
B) the model captures the relationship between the variables accurately. 
C) the residuals are interdependent. 
D) the residuals are normally distribute

Quizplus · Accepted Answer

In this figure, connected consecutive residuals allow us to see a distinct pattern across every set of four residuals; the second residual is consistently larger than the first and smaller than the third, whereas the fourth residual is consistently the smallest. This pattern, which occurs consistently over each set of four consecutive residuals in the chart, suggests that the residuals generated by this model are not independent.

The Following Scatter Chart Would Help Conclude That