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Suppose that the following model was fit to a set of data. E(y) = 0 + 1x1 + 2x2The corresponding ...

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Suppose that the following model was fit to a set of data. E(y) = 0 + 1x1 + 2x2The corresponding ...

Suppose that the following model was fit to a set of data.

E(y) = β₀ + β₁x₁ + β₂x₂

The corresponding plot if residuals against predicted values

is shown. Interpret the plot.

▸ It appears that the variance of ε is not constant.

▸ It appears that a quadratic model would be a better fit.

▸ The residuals appear to be randomly scattered so that no model modifications are necessary.

▸ It appears that the data contain an outlier.

Textbook

Statistics

Edition: 12^th

Authors: McClave, Sincich, Tamarack

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