The following residuals plot indicates ___.
A) a nonlinear relation
B) a nonconstant error variance
C) the simple regression assumptions are met
D) the sample is biased
E) the sample is random

Question

The following residuals plot indicates ___. 
A) a nonlinear relation 
B) a nonconstant error variance 
C) the simple regression assumptions are met 
D) the sample is biased 
E) the sample is random

Quizplus · Accepted Answer

The residuals plot shows a funnel shape, which indicates a nonconstant error variance. The spread of the residuals increases as the predicted values increase, suggesting that the error variance is larger for higher values of the predictor variable. This violates one of the simple linear regression assumptions of equal error variance, also known as homoscedasticity.

The Following Residuals Plot Indicates ___