Study guides

☆

Q: The random error in a regression equation?

Write your answer...

Submit

Still have questions?

Continue Learning about Statistics

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.

The total squared error between the predicted y values and the actual y values

a random pattern

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.

what is the equation of the regression line for the given data(Age, Number of Accidents) (16, 6605), (17, 8932), (18, 8506), (19, 7349), (20, 6458), (21, 5974)

Related questions

pig benis

Random error, measurement error, mis-specification of model (overspecification or underspecification), non-normality, plus many more.

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.

of, pertaining to, or determined by regression analysis: regression curve; regression equation. dictionary.com

The total squared error between the predicted y values and the actual y values

If the regression is a perfect fit.

the independent variable is time

The strength of the linear relationship between the two variables in the regression equation is the correlation coefficient, r, and is always a value between -1 and 1, inclusive. The regression coefficient is the slope of the line of the regression equation.

It can look like any algebraic equation.

on the lineGiven a linear regression equation of = 20 - 1.5x, where will the point (3, 15) fall with respect to the regression line?Below the line

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.

Bias is systematic error. Random error is not.

People also asked