0
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.
Still curious? Ask our experts.
Chat with our AI personalities
Blake
Maxine
ReneThe stochastic error term in regression analysis represents the variability in the dependent variable that is not explained by the independent variables. It captures the random fluctuations or unobserved factors that affect the dependent variable but are not included in the model. The error term is assumed to be normally distributed with a mean of zero and constant variance in classical linear regression models. Understanding and modeling the stochastic error term is crucial for assessing the reliability and accuracy of the regression results.
Add your answer:
Earn +20 pts
What is statistics about?
Mathematica can be divided into two parts ; viz. Mechanics, and Statistics. Mechanics deals with the movement of a single object in a population. Statistics deals with the movement of the population as a whole. e.g. A single car may move at 30 mph. The total car population may have an average/mean speed of 20 mph.
What are importance of biostatistics in clinical research?
Statistics in clinical research is collecting and organizing numerical and clinical data obtained from the study sites and analyzing and interpreting it to verify the results of the trials and decide if it is was a success and if the drug is fit for human consumption. Using statistics helps in reasonable prediction of the effects of the drug on humans, even though the individual responses to the drug vary from person to person. Statistics plays a central role in the entire process of clinical trial from planning, conduct, interim analysis, final analysis and reporting.
What is the role of the ministry of planning?
I believe it plays the role of the hero
Importance of statistics in commerce and business field?
statistics had a great role in the business and commerce field . it also had agreat role in the field of research.
Role of statistics in business management and administration?
Yes
