ECONOMICS|economic analysis|statistics
- anailís iarmharach Reference Faomhadh an téarma seo mar chuid de Thionscadal Lex
- ga
- residual analysis | analysis of residuals
- en
- Definition "residuals [ IATE:1623604 ] , computed from the available data, are treated as estimates of the model error, ε. As such, they are used by statisticians to validate the assumptions concerning ε. Good judgment and experience play key roles in residual analysis." Reference "Encycolopedia Britannica Online http://www.britannica.com/EBchecked/topic/564172/statistics/60718/Residual-analysis [18.6.2010]"
- Comment "The analysis of residuals plays an important role in validating the regression model. If the error term in the regression model satisfies the four assumptions noted earlier, then the model is considered valid. he most common residual plot shows ŷ on the horizontal axis and the residuals on the vertical axis. If the assumptions regarding the error term, ε, are satisfied, the residual plot will consist of a horizontal band of points. If the residual analysis does not indicate that the model assumptions are satisfied, it often suggests ways in which the model can be modified to obtain better resultsEven though most assumptions of multiple regression cannot be tested explicitly, gross violations can be detected and should be dealt with appropriately. In particular outliers (i.e., extreme cases) can seriously bias the results by ""pulling"" or ""pushing"" the regression line in a particular direction, thereby leading to biased regression coefficients. Often, excluding just a single extreme case can yield a completely different set of results."