If you have taken into account all relevant explanatory factors, the residuals from a multiple regression model should be random.

Question

Quizplus · Accepted Answer

If all relevant explanatory factors are included in the model, the residuals should represent random variation that cannot be explained by the model. This randomness indicates that the model is a good fit for the data and that no important explanatory factors have been left out.

If You Have Taken into Account All Relevant Explanatory Factors