answersLogoWhite

0


Want this question answered?

Be notified when an answer is posted

Add your answer:

Earn +20 pts
Q: What are the reasons for the inclusion of stochastic error term in a simple regression equation?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Math & Arithmetic

When you use your regression line to predict values that are not in the sample and discovered large residual values in each prediction what can you say about your regression line?

There are several possible explanations: Leaving aside the two most obvious reasons: calculation error and attempted extrapolation, there are the following possibilities: The true relationship is non-linear. A relevant variable has been missed omitted. The observations are very variable: leading to a very large residual error. There is not enough variation in the independent (or predictive) variable so that Sxx is very small.


What is weighted residual method?

In estimating a linear relationship using ordinary least squares (OLS), the regression estimates are such that the sums of squares of the residuals are minimised. This method treats all residuals as being as important as others.There may be reasons why the treatment of all residuals in the same way may not be appropriate. One possibility is that there is reason to believe that there is a systematic trend in the size of the error term (residual). One way to compensate for such heteroscedasticity is to give less weight to the residual when the residual is expected to be larger. So, in the regression calculations, rather than minimise the sum of squares of the residuals, what is minimised is their weighted sum of squares.


What are the reasons a person might use MathType?

MathType is a powerful interaction equation editor for Windows and Macintosh that lets you create mathematical notation for word processing, web pages, desktop publishing, presentations, elearning and for TeX, LaTeX, and mathML documents.


Why to study complex numbers?

There are many reasons, but the one I'm fond of is that if you plot a complex equation, you can visualize certain aspects of say electricity. A plot of w=(z-1)/(z+1) can show a possible electromagnetic field of two wires carrying current as depicted in the below LINK.


When was Six Reasons Why created?

Six Reasons Why was created on 2008-07-22.

Related questions

Why are your predictions inaccurate using a linear regression model?

There are many possible reasons. Here are some of the more common ones: The underlying relationship is not be linear. The regression has very poor predictive power (coefficient of regression close to zero). The errors are not independent, identical, normally distributed. Outliers distorting regression. Calculation error.


What is the purpose of a residual analysis in simple linear regression?

One of the main reasons for doing so is to check that the assumptions of the errors being independent and identically distributed is true. If that is not the case then the simple linear regression is not an appropriate model.


Describle two reasons for balancing chemical equation?

what is the chemical equation of nitrogen + oxygen= nitric oxide


Six reasons for inclusion of Philosophy of education in teachers education program?

justify the study of philosophy of education in a teacher education programe


What is the definition of organization marketing?

Organization marketing has to do with the purchasers of goods. The inclusion of all purchasers of a specific good who purchase it for reasons other than personal consumption comprise organizational marketing.


Which pocess greater gravity Jupiter or earth?

Jupiter due to the fact that it is a lot bigger and many more reasons which come into the equation


Why is the chemical equation 2H2 O2 balanced?

The chemical equation 2H2 + O2 produces 2H2O is balanced because it obeys the law of conservation of mass. This means that the number of atoms of each element is the same on both sides of the equation. In this case, there are 4 hydrogen atoms and 2 oxygen atoms on both the reactant and product sides.


When you use your regression line to predict values that are not in the sample and discovered large residual values in each prediction what can you say about your regression line?

There are several possible explanations: Leaving aside the two most obvious reasons: calculation error and attempted extrapolation, there are the following possibilities: The true relationship is non-linear. A relevant variable has been missed omitted. The observations are very variable: leading to a very large residual error. There is not enough variation in the independent (or predictive) variable so that Sxx is very small.


What is the length and equation of a straight line whose coordinates are 2 3 and 2 3 giving thorough reasons for your answer?

Since both coordinate pairs are identical, this would represent a point. There is no way to determine the length or equation for a single point; you need two points.


How woul you describe alex standall from thirteen reason why?

Alex Standall from "Thirteen Reasons Why" is a complex character who struggles with guilt, friendships, and his sense of identity. He is a conflicted teenager whose actions have unintended consequences, leading to his inclusion on Hannah Baker's list of reasons for her suicide. Throughout the series, Alex is shown grappling with the aftermath of Hannah's death and trying to navigate the complexities of high school life.


What are some reasons advocates think HCE is useful in schools?

Benefits of Inclusion for Students Without Disabilities Meaningful friendships. Increased appreciation and acceptance of individual differences. Increased understanding and acceptance of diversity. Respect for all people. Prepares all students for adult life in an inclusive society.


What is weighted residual method?

In estimating a linear relationship using ordinary least squares (OLS), the regression estimates are such that the sums of squares of the residuals are minimised. This method treats all residuals as being as important as others.There may be reasons why the treatment of all residuals in the same way may not be appropriate. One possibility is that there is reason to believe that there is a systematic trend in the size of the error term (residual). One way to compensate for such heteroscedasticity is to give less weight to the residual when the residual is expected to be larger. So, in the regression calculations, rather than minimise the sum of squares of the residuals, what is minimised is their weighted sum of squares.