The scatter chart below displays the residuals verses the dependent variable, t

Question

The scatter chart below displays the residuals verses the dependent variable, t. Which of the following conclusions can be drawn based upon this scatter chart?

a.

model is time-invariant.

b.

model captures the relationship between the variables accurately.

c.

residuals are not independent.

d.

residuals are normally distributed.

a.

model is time-invariant.

b.

model captures the relationship between the variables accurately.

c.

residuals are not independent.

d.

residuals are normally distributed.

Explanation / Answer

The scatter chart below displays the residuals verses the dependent variable, t. Which of the following conclusions can be drawn based upon this scatter chart?

d.

residuals are normally distributed.

d.

residuals are normally distributed.

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