Consider the following regression based on hypothetical data. Now we hypothesize

Question

Consider the following regression based on hypothetical data. Now we hypothesize that only age and height affect people’s weight. So we run a regression analysis of data from a random sample of 25 people, with weight (in pounds) as the dependent variable and age (x variable 1, in years) and height (x variable 2, in inches) as the independent variables. Here is the residual plot with height on the horizontal axis (x variable 2):

The residual plot looks reasonably evenly spread out so we can conclude that _________

a) non-linear relationship is not an issue

b) multicollinearity is not an issue

c) heteroscadesticity os not an issue

d) nonlinearity is not an issue

Explanation / Answer

The residual plot looks reasonably evenly spread out so we can conclude that _________

a) non-linear relationship is not an issue (correct option)

because A random pattern of residuals supports a linear model; a non-random pattern supports a non-linear model. The sum of the residuals is always zero, whether the data set is linear or nonlinear.

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