The data in the accompanying table represent the size in squ

The data in the accompanying table represent the size (in square feet) and monthly rent for a sample of 20 apartments in a neighborhood in a recent year. The data are modeled by the equation

Yi= 39.4225 +1.1808 Xi, where Xiis the size and Yi is the predicted monthly rent for the ith apartment. Perform a residual analysis for these data. Based on these results, evaluate whether the assumptions of regression have been seriously violated.

Which of the assumptions of regression, if any, have been seriously violated?

A. The assumption of linearity has been violated because the data are not linear.

B. The assumption of independence has been violated because errors from later time periods appear to be related to those from earlier time periods.

C.The assumption of normality has been violated because the normal probability plot does not appear to be a straight line.

D.The assumption of equal variance has been violated because the variability of the residuals is much greater when the apartment size is larger.

E.None of the assumptions of regression have been seriously violated.

Apartment Size

852

1446

1085

1233

1483

1136

956

1105

1286

1370

Monthly Rent

950

1595

1197

1500

1700

1650

1150

1397

1648

1800

Apartment Size

1180

1227

1248

1257

1153

897

1363

1039

1001

1202

Monthly Rent

1401

1448

1300

1700

1103

1150

1600

1501

978

1791

Solution

Xiis the size and Yi is the predicted monthly rent for the ith apartment.

here X and T are not dependent on one another (we check it via pairwise t-test )

hence this condition should hold for regression