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7) The following graph shows evidence of?

Scatterplot Dependent Variable: Financial Performance 3 D 20 DO O 08 5 O 8 OA $ Regression Standardized Predicted Value 0 DO

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Answer #1

On X axis we have Regression standardized residuals and on Y axis we have predicted values. Here the plot is distributed completely at random. There is no specific pattern among the residuals. So we can say that the Homoskedasticity of residuals is maintained which means Variance of Residuals is constant.

So this plot shows evidence of constant variance and it also gives evidence that mean of residuals is close to 0.

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