One of the assumptions of regression analysis is that the plots on a scatter diagram will be spread uniformly and in accord with the normal curve assumptions over the regression line. This means that the points will be diffused and spread out near the line and become closer together as you move away from the line.

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The assumption of regression analysis is not that the scatter plot will be spread uniformly and in accordance with the normal curve assumptions over the regression line. Rather, the assumption is that the residuals (the differences between the observed values and the predicted values) will be normally distributed and have a constant variance (homoscedasticity) along the regression line. The scatter plot may or may not demonstrate these characteristics.

One of the Assumptions of Regression Analysis Is That the Plots