A researcher wanted to predict academic achievement using Intelligence Test-A (IT-A), Intelligence Test-B (IT-B), Type of school (rural/urban), and conscientiousness as predictors. She used multiple regression analysis. She collected data on 200 students on all variables. The OLS estimator was used. The F = 8.9, p < .01 for the entire model. In individual predictor analysis, IT-B was the insignificant predictor. The suitable test indicated homoscedasticity. The model R² = 0.64 and adjusted R² = 0.59. Both intelligence tests are significantly correlated with the criterion variable and with each other.
Which of the following is correct about residual variance in the passage?
Pick an option to check yourself, or open the answer below.
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Correct answer: D. It is randomly distributed
Explanation
With homoscedasticity and a well-fitting OLS model, residuals are randomly distributed and uncorrelated with the predictors.
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