What does the plot of the residuals and the fitted values suggest?
A) The equal spread condition is not satisfied.
B) The data are not normal.
C) The linearity condition is not satisfied.
D) There may be autocorrelation.
E) It does not indicate any of the above.

Question

Quizplus · Accepted Answer

If the plot of residuals and fitted values shows a non-constant spread (i.e., the spread of residuals is not equal across all fitted values), this violates the assumption of equal variance or homoscedasticity. A non-constant spread can introduce bias in the estimated regression coefficients and can negatively affect the prediction accuracy of the regression model.

What Does the Plot of the Residuals and the Fitted