Observe the following residual plot. Determine if any of the assumptions are violated. If a violation has occurred, state it and propose a fix.
Definitions:
Step-Down Method
An accounting technique used to allocate overhead costs to related departments progressively, moving from departments that provide services to other departments first.
Administration Department
A functional area within an organization responsible for overseeing the operations and ensuring the business runs smoothly.
Information Technology
The use of computers and telecommunications equipment to store, retrieve, transmit, and manipulate data.
Emergency Room
A specialized department in a hospital that provides immediate treatment to patients with acute illnesses or injuries.
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