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the residual is the difference between the observed Y and the estimated regression line(Y), while the error term is the difference between the observed Y and the true regression equation (the expected value of Y). Error term is theoretical concept that can never be observed, but the residual is a real-world value that is calculated for each observation every time a regression is run. The reidual can be thought of as an estimate of the error term, and e could have been denoted as ^e.
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What is the difference between a error and a mistake?
There is no difference.
What is the difference between a mistake and an error?
There is no difference.
What is the difference between low percent error and high percent error?
The difference between low percent error and high percent error is one is low and the other is high
What is the difference between a bias and a random error?
Bias is systematic error. Random error is not.
Difference between an error and a mistake?
they are the same thing.
What is a stochastic error term?
A stochastic error indicates an error that is random between measurements. Stochastics typically occur through the sum of many random errors.
What is the major difference between a mathematical model and an econometric model?
Mathematical model is exact in nature.it has Beta zero and Beta one and no stochastic or disturbance variables. Econometric model represents omitted variable, error in measurement and stochastic variables.
What is a stochastic error?
In a statistical model, variations in the dependent variable can be attributed to independent variables. However, there is a random element that is not accounted for and this is the stochastic error.
What is the difference between a error and a mistake?
There is no difference.
What is the difference between a mistake and an error?
There is no difference.
What is the difference between low percent error and high percent error?
The difference between low percent error and high percent error is one is low and the other is high
What is the difference between a bias and a random error?
Bias is systematic error. Random error is not.
What is the relationship of the standard error of the mean to the standard error of the difference?
It would help to know the standard error of the difference between what elements.
What is stochastic error term?
A Stochastic error term is a term that is added to a regression equation to introduce all of the variation in Y that cannot be explained by the included Xs. It is, in effect, a symbol of the econometrician's ignorance or inability to model all the movements of the dependent variable.
Difference between an error and a mistake?
they are the same thing.
What is the role of the stochastic error term in regression analysis?
Regression analysis is based on the assumption that the dependent variable is distributed according some function of the independent variables together with independent identically distributed random errors. If the error terms were not stochastic then some of the properties of the regression analysis are not valid.
What is the index error in theodolite?
Half of the difference between the two positions is called the "index error".
