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QUESTION

We modeled the price of a diamond based on it's carat weight. A multiple regression model was proposed and the following residual plot was created:

We modeled the price of a diamond based on it's carat weight. A multiple regression model was proposed and the following residual plot was created:

Stem and Leaf Plot of zresidual

Depth Stem Leaves

1       -2  1

15      -1  99988777666555

29      -1  44444432221000

70      -0  99999999999887777777666666665555555555555

(86)     -0  4444444433333333333333332222222222222222211111111111111111111110*

152     0  0000000000000000000000000000000000011111111111111111111111111111*

47      0  55555555666667778888889999999

18      1  34

16      1  56669999

8       2  0

7       2 

7       3 

7       3  79

5       4  012

2       4 

2       5 

2       5  8

1       6  0

308 cases included 0 missing cases

Based on this plot, what statement would be true?

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