In residual analysis, if the assumptions about the error term are valid then the plot of the residuals against the corresponding x values should have a funnel shape.

Question

Quizplus · Accepted Answer

The plot of the residuals against the corresponding x values should ideally show no particular pattern, indicating homoscedasticity (constant variance) of errors, rather than a funnel shape which indicates heteroscedasticity (non-constant variance).

In Residual Analysis, If the Assumptions About the Error Term