A residual measures:
A) The unobservable error term, $\varepsilon$.
B) The distance between the actual value and the predicted value.
C) The distance between $\beta$-hat and the actual value of $\beta$.
D) The expected value of the dependent variable.

Question

Quizplus · Accepted Answer

Residuals in statistical models, especially in linear regression, measure the difference between the observed values and the values predicted by the model. This is essentially the distance between the actual value and the predicted value for each data point.

A Residual Measures: A) the Unobservable Error Term ε\varepsilonε B) the Distance Between the Actual Value and the

A Residual Measures:
A) the Unobservable Error Term $\varepsilon$
B) the Distance Between the Actual Value and the