STATISTICAL TECHNIQUES AND TOOLS
REGRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -For any given value of X, we go straight up to the line, and then move horizontally to the left to find the value of Y. The predicted value of Y is called the predicted value of Y, and is denoted Y’. The difference between the observed Y and the predicted Y (Y-Y’) is called a residual.
Detailed explanation-2: -The difference between the actual value of the dependent variable y (in the sample date) and the predicted value of the dependent variable ^y obtained from the linear regression equation is called the error or residual.
Detailed explanation-3: -A difference between the predicted regression value and the actual value is called residual. One of the main assumptions of the regression analysis is the normal distribution of the residuals with the mean equal to 0, i.e residuals must be both positive and negative.