What are the four key assumptions examined in specification analysis in the case of simple regression?\ Question content area bottom\ Part 1\ A.\ Four key assumptions examined in specification analysis are\ 1. Independence of residuals.\ 2. Normal distribution of residuals.\ 3. Fixed costs are allocated as if they are variable.\ 4. The relationship between the cost driver and the cost is not stationary.\ B.\ Four key assumptions examined in specification analysis are\ 1. Linearity of relationship between the dependent variable and the independent variable within the relevant range.\ 2. Constant variance of residuals for all values of the independent variable.\ 3. Independence of residuals.\ 4. Normal distribution of residuals.\ C.\ Four key assumptions examined in specification analysis are\ 1. Linearity of relationship between the dependent variable and the independent variable within the relevant range.\ 2. Constant variance of residuals for all values of the independent variable.\ 3. Fixed costs are allocated as if they are variable.\ 4. The relationship between the cost driver and the cost is not stationary.\ D.\ None of the above are correct.