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1. In regression analysis, the assumed behavior of the residuals is often evaluated in a scatter plot with the residuals on the vertical axis and

1. In regression analysis, the assumed behavior of the residuals is often evaluated in a scatter plot with the residuals on the vertical axis and the cost driver on the horizontal axis. Consider the following pattern: as the cost driver increases, the residuals are positive, then negative, and then positive. This pattern indicates a condition known as:

a. serial correlation

b. multi-collinearity

c. heteroscedasticity

d. homoscedasticity

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