Suppose we fit the least-squares regression model to a set of data. A plot of the residuals against the explanatory variable shows a curved pattern. What can we conclude?
Select one: The correlation must be positive.
Outliers must be present.
The correlation must not be a good description of the relationship.
In a simple linear regression of Y on X, suppose the residual value at a specific observed data point (X, Y) is 0.59. What can we conclude?
Select one: The predicted value Y-predicted (X) is below the linear regression line.
The predicted value Y-predicted (X) is above the linear regression line.
The observed value Y (X) is above the linear regression line.
The observed value Y (X) is below the linear regression line.
The observed value Y (X) is on the linear regression line.