If a residual plot exhibits a curved pattern in the residuals, ...

[karen]

If a residual plot exhibits a curved pattern in the residuals, this means that:
 
  A) the errors are not normally distributed.
  B) there must be a curvilinear relation between x and y.
  C) there is no significant relation between x and y.
  D) there is a problem with constant variance.

Question 2

A company has developed a linear trend model to forecast monthly sales. The following data show the actual sales and the fitted sales for months 1-12.
 
  Month Sales Predicted Sales
  1 200 185
  2 260 221
  3 210 258
  4 340 294
  5 450 330
  6 230 366
  7 300 402
  8 500 438
  9 360 475
  10 600 511
  11 460 547
  12 700 583
 
  Based on these data, what is the mean square error for the linear trend model?
  A) Approximately 7,968
  B) About 99,615
  C) Nearly 18,000
  D) None of the above

[iman]

Answer to Question 1

B

Answer to Question 2

A

[karen]

Excellent

[brbarasa]

TYSM