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Online entertainment streaming services have gained in popularity in recent years as an alternative to traditional television. One such company has seen steady growth in each period of 3 months, called a quarter, over the past 4 years. The scatterplot shows the relationship between the number of quarters passed since January 2014 and the number of members to the streaming service. A least-squares equation that summarizes this relationship is members hat = 1.829 (quarters) minus 18.108, with a value for r of 0.991.
A graph titled subscribers versus quarters since January 2011 has quarters since January 2011 on the x-axis, and subscribers on the y-axis. Points are in a line with positive slope.
A graph titled Residuals versus quarters since January 2011 has quarters since January 2011 on the x-axis, and Residual on the y-axis. The points curve down, and then curve up.
Based on the residual plot, is a linear model appropriate for summarizing this relationship?
A linear model is appropriate because the value of r is close to 1.
A linear model is appropriate because the residual plot is curved.
A linear model is not appropriate because the residual plot shows a clear pattern.
A linear model is not appropriate because the scatterplot relating time and subscribers shows a clear pattern.
