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A scatter diagram can be used to evaluate the assumption of linearity. For each independent variable, the dependent variable can be plotted against the independent variable. These plots provide evidence of linear relationships.AACSB: Communication AbilitiesBloom's: ComprehensionDifficulty: MediumLearning Objective: 14-06 Use residual analysis to evaluate the assumptions of multiple regression analysis.Topic: Evaluating Assumptions128. How are residual plots drawn and used to evaluate the assumptions of linear multiple regression? A residual plot graphs the residuals against the fitted values of the dependent variable. To support the assumptions of equal variation, the points should be evenly distributed above and below zero and evenly distributed over all values of the fitted values of the dependent variable.AACSB: Communication AbilitiesBloom's: ComprehensionDifficulty: HardLearning Objective: 14-06 Use residual analysis to evaluate the assumptions of multiple regression analysis.Topic: Evaluating Assumptions129. What statistic is used to assess multicollinearity in multiple regression analysis?