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Statistics and Probability

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Moderate

Violation of Assumptions in Linear Regression

STATS-VJAEMX

A simple linear regression analysis was carried out with square footage of a house as $x$ and the selling price of the house as $y$. Based on the residual plot below, there may be a violation of which of the following assumptions?

A

Linearity of the X and Y relationship.

B

Normality of errors.

C

Homoscedasticity.

D

Independence of errors.