A residual plot from a simple linear regression analysis is shown to the right. Use the plot toanswer the question below.residuals0XWhich of the following statements regarding the plot is true?OA. The condition that the residuals are normally distributed is not met since not all of the residuals fall on the reference line in the residualplot.OB. The condition that the residuals have constant variation is met since the lines connecting the largest positive residuals and largestnegative residuals are parallel.Oc. The condition that the residuals are normally distributed is not met since there is a diamond shape to the residuals in the residual plot.OD. The condition that the residuals have constant variation is not met since the variation increases and then decreases as x gets larger.

We are given the residual plot from a simple linear regression analysis. The objective is to…

Answered: A residual plot from a simple linear…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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The managing director of a consulting group has the accompanying monthly data on total overhead costs and professional labor hours to bill to clients. Complete parts a through c Click the icon to view the monthly data. a. Develop a simple linear regression model between billable hours and overhead costs. Overhead Costs = 247733.3 +(43.2000) x Billable Hours (Round the constant to one decimal place as needed. Round the coefficient to four decimal places as needed. Do not include the $ symbol in your answers.) b. Interpret the coefficients of your regression model. Specifically, what does the fixed component of the model mean to the consulting firm? Interpret the fixed term, bo. if appropriate. Choose the correct answer below. OA. The value of by is the predicted overhead costs for 0 billable hours. OB. For each increase of 1 unit in overhead costs, the predicted billable hours are estimated to increase by bo OC. It is not appropriate to interpret by. because its value is the predicted…

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