Consider the following to answer the question(s) below:
A regression model was developed relating average annual pay to the percentage of women employed for a sample of companies. Below is the plot of residuals versus predicted values.
-What does the plot of residuals suggest?
A) An outlier is present in the data set.
B) The linearity condition is not satisfied.
C) A high leverage point is present in the data set.
D) The equal spread condition is not satisfied.
E) The data are not normal.

Question

Consider the following to answer the question(s) below:
A regression model was developed relating average annual pay to the percentage of women employed for a sample of companies. Below is the plot of residuals versus predicted values. 
-What does the plot of residuals suggest?
A) An outlier is present in the data set. 
B) The linearity condition is not satisfied. 
C) A high leverage point is present in the data set. 
D) The equal spread condition is not satisfied. 
E) The data are not normal.

Quizplus · Accepted Answer

The plot of residuals versus predicted values shows a funnel shape, indicating that the variability of the residuals increases as the predicted values increase. This violates the equal spread condition, which specifies that the variability of the residuals should be consistent across all predicted values.

Consider the Following to Answer the Question(s) Below