(e) In order to perform a hypothesis test for a linear relationship between the startup cost and

annual franchise fee cost, we need four assumptions. They are independence of all pairs of observations (3:1,y1), (332,312), . . .

linear relationship between a: and y constant variance of the residuals for all values of a: normal distribution of the residuals for all values of 3: Identify which plot(s) (A-C) on page 5 are used to verify these assumptions. Note that

some plots can be used more than once. i. ii. iii. iv. [1pt] Linearity A. Choose the plot(s) from the list that can be used to check the linearity assumption.

B. Is this assumption met? YES NO NOT ENOUGH INFORMATION [1pt] Constant Variance A. Choose the plot(s) from the list that can be used to check the constant variance

assumption. B. Is this assumption met? YES NO NOT ENOUGH INFORMATION [1pt] Normality A. Choose the plot(s) from the list that can be used to check the normality assumption.

B. Is this assumption met? YES NO NOT ENOUGH INFORMATION [1pt] Independence A. Choose the plot(s) from the list that can be used to check the independence as-

sumption. B. Is this assumption met? YES NO NOT ENOUGH INFORMATION