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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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