A residual plot from a simple linear regression analysis is shown to the right.

Question

A residual plot from a simple linear regression analysis is shown to the right. Use the plot to answer the question below. Which of the following statements regarding the plot is true? The condition that the residuals are normally distributed is not met since not all of the residuals fall on the reference line in the residual plot. The condition that the residuals have constant variation is met since the lines connecting the largest positive residuals and largest negative residuals are parallel. The condition that the residuals are normally distributed is not met since there is a diamond shape to the residuals in the residual plot. The condition that the residuals have constant variation is not met since the variation increases and then decreases as x gets larger.

Explanation / Answer

By looking at the diagram we conclude that the condition that residuals have constant variation is not met since the variation increases and then decreases as x gets larger.

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