Construct a residual plot. EREM 161 16 16 16 12 12 12 12 8 8 8 4 4- 4 of -4 -4 -4 -4 -8 -8 -8 -8 -12 -16 -12 -12- -12 -16 -16 -16 6 8 10 12 14 6 8 10 6 8 14 2 4 10 12 14 10 12 14 Years of Experience Years of Experience Years of Experience Years of Experience (b) Do the assumptions about the error terms seem reasonable in light of the residual plot? O The plot suggests a funnel pattern in the residuals indicating that the error term assumptions do not appear reasonable. O The plot suggests a generally horizontal band of residual points indicating that the error term assumptions do not appear reasonable. O The plot suggests a funnel pattern in the residuals indicating that the error term assumptions appear reasonable. O The plot suggests a generally horizontal band of residual points indicating that the error term assumptions appear reasonable.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
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