1. **Problem statement:** We need to interpret the residual plot from a regression analysis of electric car sales over months. 2. **What is a residual plot?** A residual plot shows the differences between observed data points and the values predicted by a model. Residuals are calculated as: $$\text{Residual} = \text{Observed value} - \text{Predicted value}$$ 3. **Interpreting the residual plot:** - Most residual points hover near zero, meaning the model fits the data well for most months. - Near the far right (higher months), residuals drop sharply negative, indicating the model overestimates the number of electric cars for those months. 4. **Conclusion:** - The exponential model fits well initially but tends to overpredict electric car sales in later months. - This suggests the growth rate may slow down or other factors affect sales beyond the model's assumptions. This interpretation helps understand the model's accuracy and where it might need improvement.