Is the following statement true or false? If it is false, briefly explain why. I

Question

Is the following statement true or false? If it is false, briefly explain why.

If the simple regression model (SRM) is used to model data that do not have constant variance, then 95% prediction intervals produced by this model are longer than needed.

Choose the correct answer below.

A. True

B. False, because prediction intervals are independent of variance.

C. False, because prediction intervals would be too short.

D. False, because prediction intervals would vary between too long and too short.

Which one is correct: C or D?

Explanation / Answer

Answer is Option D.

False, because prediction intervals would vary between too long and too short.

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