includes both positive and negative terms.
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)
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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.
The total squared error between the predicted y values and the actual y values
of, pertaining to, or determined by regression analysis: regression curve; regression equation. dictionary.com
If the regression is a perfect fit.
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.
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
It can look like any algebraic equation.
Bias is systematic error. Random error is not.
a random pattern
Yes.