Refer to the exhibit.

You have run a linear regression model against yourdata, and have plotted true outcome versus predicted
outcome. The R-squared of your model is 0.75. What is your assessment of the model?

A.
The R-squared may be biased upwards by the extreme-valued outcomes. Remove them and refit to get a
better idea of the model’s quality over typical data.

B.
The R-squared is good. The model should perform well.

C.
The extreme-valued outliers may negatively affectthe model’s performance. Remove them to see if theRsquared improves over typical data.

D.
The observations seem to come from two different populations,but this model fits them both equally well.