If the residual plot, i.e., a graph in which the residuals for a particular regr

Question

If the residual plot, i.e., a graph in which the residuals for a particular regression model are plotted along with their associate value of x as an ordered pair, shows a parabolic pattern, which of the following assumptions of the simple regression model is likely to be in violation?

The error terms are independent

The error terms have constant variance

The error terms are uniformly distributed

The model is linear

A manager wishes to predict the annual cost (y) of an automobile based on the number of miles (x) driven. The following model was developed: y = 1,550 + 0.36x. If a car is driven 30,000 miles, the predicted cost is ___________.

12,350

9,250

10,250

10,800

2,630

The error terms are independent

If the residual plot, i.e., a graph in which the residuals for a particular regression model are plotted along with their associate value of x as an ordered pair, shows a parabolic pattern, which of the following assumptions of the simple regression model is likely to be in violation? A manager wishes to predict the annual cost (y) of an automobile based on the number of miles (x) driven. The following model was developed: y = 1,550 + 0.36x. If a car is driven 30,000 miles, the predicted cost is

Explanation / Answer

y = 1550 + 0.36x car is driven 30,000 miles So, Answers is A)12,350

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