Which statement about residuals plots is true?
I. A curved pattern indicates nonlinear association between the variables.
II. A pattern of increasing spread indicates the predicted values become less reliable as the explanatory variable increases.
III. Randomness in the residuals indicates the model will predict accurately.
A) I and II only
B) II only
C) I, II, and III
D) I only
E) I and III only

Question

Quizplus · Accepted Answer

I is true because a curved pattern in the residuals plot means that the relationship between the explanatory and response variables is not linear, indicating the need for a nonlinear model.

II is true because an increasing spread of residuals indicates that the predicted values are becoming less reliable as the explanatory variable increases. This phenomenon is known as heteroscedasticity and can negatively impact the model's predictive power.

III is false because randomness in the residuals is not necessarily an indicator of predictive accuracy. It is merely a necessary but not sufficient condition for model validity.

Which Statement About Residuals Plots Is True