Stock prices and earnings per share (EPS) data were collected for a sample of 15
Companies. A regression model was fit to these data. From its plots of residuals shown
Below, which assumption appears to be violated?
A) Equal Variance
B) Linearity
C) Normality
D) Independence
E) None; all appear to be satisfied.

Question

Stock prices and earnings per share (EPS) data were collected for a sample of 15
Companies. A regression model was fit to these data. From its plots of residuals shown
Below, which assumption appears to be violated? 
A) Equal Variance 
B) Linearity 
C) Normality 
D) Independence 
E) None; all appear to be satisfied.

Quizplus · Accepted Answer

The Answer of Stock prices and earnings per share (EPS) data were collected for a sample of 15
Companies. A regression model was fit to these data. From its plots of residuals shown
Below, which assumption appears to be violated? 
A) Equal Variance 
B) Linearity 
C) Normality 
D) Independence 
E) None; all appear to be satisfied.

Stock Prices and Earnings Per Share (EPS) Data Were Collected