The scatter chart below displays the residuals verses the dependent variable, x. Which of the following conclusions can be drawn based upon this scatter chart?
A)The residuals have a constant variance.
B)The model fails to capture the relationship between the variables accurately.
C)The model over predicts the value of the dependent variable for small values and large values of the independent variable.
D)The residuals are normally distributed.

Question

The scatter chart below displays the residuals verses the dependent variable, x. Which of the following conclusions can be drawn based upon this scatter chart? ​ 
A)The residuals have a constant variance. 
B)The model fails to capture the relationship between the variables accurately. 
C)The model over predicts the value of the dependent variable for small values and large values of the independent variable. 
D)The residuals are normally distributed.

Quizplus · Accepted Answer

The scatter chart shows a pattern in the residuals, indicating that the model fails to accurately capture the relationship between the variables. This is shown by the residuals being spread out and not randomly scattered around the horizontal line at y=0. It is not possible to determine if the residuals have a constant variance or if they are normally distributed based on this scatter chart alone. Additionally, there is no evidence to suggest that the model overpredicts the value of the dependent variable for small or large values of the independent variable.

The Scatter Chart Below Displays the Residuals Verses the Dependent