When homoscedasticity exists, we expect that a plot of the residuals versus the fitted Y:
A)will form approximately a straight line.
B)crosses the centerline too many times.
C)will yield a Durbin-Watson statistic near 2.
D)will show no pattern at all.

Question

Quizplus · Accepted Answer

Homoscedasticity refers to the assumption that the variance of the error terms in a regression model is constant across all levels of the independent variable. Therefore, when homoscedasticity exists, a plot of the residuals (errors) versus the fitted values (predicted values) should show no discernible pattern, indicating that the variance of the errors is consistent across all values of the independent variables.

When Homoscedasticity Exists, We Expect That a Plot of the Residuals