A company performs linear regressions to compare data sets for two similar
products. If the residuals for brand A are randomly scattered above and
below the x-axis, and the residuals for brand B are also randomly scattered
but clustered closer to the x-axis, what can be concluded?

Respuesta :

Based on the information given, the thing that can be concluded is that Brand A's data are probably linear while Brand B's data are probably not.

What is a Linear regression?

It should be noted that a linear regression simply shows the relationship between the dependent and independent variables.

If residuals for brand A are randomly scattered above and below the x-axis, and the residuals for brand B are also randomly scattered but clustered closer to the x-axis, it implies that brand A's data are probably linear while Brand B's data are probably not.

A random scatter of points on the residual plot simply implies that there's a linear relationship in the original data set.

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