Below is a summary of outputs for the analysis of residuals for the regression from Q2. Please refer to the below output to answer the following questions.

Regression summary output for residuals at time t (Et) vs. residuals at time t-1 (Et-1):

Regression Statistics

Multiple R

0.04522474

R Square

0.002045277

Adjusted R Square

0.097750195

Standard Error

1.094307688

Observations

12

ANOVA

df

SS

MS

F

F

Regression

1

0.02454258

0.024543

0.020494688

0.889007689

Residual

10

11.97509315

1.197509

Total

11

11.99963573

Coefficients

Standard Error

t Stat

P-value

Intercept

-0.00054687

0.315973764

-0.00173

0.998653087

X Variable 1

-0.04536222

0.316864548

-0.14316

0.889007689

Regression summary output for squared residuals (Et^2) vs. product quality:

SUMMARY OUTPUT

Regression Statistics

Multiple R

0.11296583

R Square

0.012761279

Adjusted R Square

-0.076987696

Standard Error

1.297647678

Observations

13

ANOVA

df

SS

MS

F

Regression

1

0.23943

0.23943

0.142189

Residual

11

18.52278

1.683889

Total

12

18.76221

Coefficients

Standard Error

t Stat

P-value

Intercept

0.465436682

1.265885

0.367677

0.720091

X Variable 1

0.008061413

0.021379

0.377079

0.713288

Regression summary output for squared residuals (Et^2) vs. market share:

SUMMARY OUTPUT

Regression Statistics

Multiple R

0.257032

R Square

0.066065

Adjusted R Square

-0.01884

Standard Error

1.26213

Observations

13

ANOVA

df

SS

MS

F

Regression

1

1.239534

1.239534

0.778127

Residual

11

17.52268

1.592971

Total

12

18.76221

Coefficients

Standard Error

t Stat

P-value

Intercept

0.211791

0.879047

0.240932

0.814039

X Variable 1

0.094354

0.106964

0.882115

0.396581

Please check the validity of your model, in other words check whether the regression assumptions (all three of them) hold in your model. You can use the following to check each assumption:

Group of answer choices

Plot looks fairly linear, the residuals are not normally distributed.

Plot looks fairly linear, the residuals are normally distributed.

Plot does not look linear, the residuals are not normally distributed.

Plot does not look linear, the residuals are not normally distributed.