From its plot of residuals versus fitted
A) Equal Variance
B) Linearity
C) Normality
D) Independence
E) None; all appear to be satisfied.

Question

From its plot of residuals versus fitted 
A) Equal Variance 
B) Linearity 
C) Normality 
D) Independence 
E) None; all appear to be satisfied.

Quizplus · Accepted Answer

The plot of residuals versus fitted values checks for equal variance assumption which examines whether the variance of the errors is constant across the range of observed values. The plot should have a random scatter of points with no clear pattern. If there is any pattern or trend, it suggests non-constant variance or heteroscedasticity. The plot shown in the question indicates a fan shape or increasing variance as the fitted values increase, indicating non-constant variance or heteroscedasticity. Therefore, the assumption of equal variance is violated.

From Its Plot of Residuals Versus Fitted