Question 1: What pattern(s) would one like to see in a residual plot and why?
Question 2:
a) State in algebraic notation and explain the assumption about the CLRM's disturbances that is referred to by the term homoscedasticity
b) What would the consequence be for a regression model if the errors were not homoscedastic?
c) How might you proceed if you found that (b) was actually the case?