The following is a scatterplot of profit versus sales. Which of the following st
ID: 3159283 • Letter: T
Question
The following is a scatterplot of profit versus sales.
Which of the following statements is supported by the plot?
There is no striking evidence in the plot that the assumptions for regression are violated and there is a clear, straight-line trend.
There are very influential observations in the plot suggesting that the least-squares regression line must be interpreted with extreme caution.
The plot contains dramatic evidence that the standard deviation of the response about the true regression line is not even approximately the same everywhere.
The plot contains many fewer points than are needed to fit the least-squares regression line. Obviously, there is a major error present.
There is no striking evidence in the plot that the assumptions for regression are violated and there is a clear, straight-line trend.
There are very influential observations in the plot suggesting that the least-squares regression line must be interpreted with extreme caution.
The plot contains dramatic evidence that the standard deviation of the response about the true regression line is not even approximately the same everywhere.
The plot contains many fewer points than are needed to fit the least-squares regression line. Obviously, there is a major error present.
Explanation / Answer
The image is not displayed.
Generally to use linear regression, Linearity assumption is checked. If the true relationship is far from linear, and on euse a staright line to fit the data, entire analysis would be useless.
The Straight plot condition is satisfied, if the scatterplot looks straight, violation sof the rule is checked by scatterplot of the residuals against x or predicted values, yhat. That plot will give horizontal direction and should have no pattern, if the condition is satisfied.
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