Neas-Seminars

Question


http://33771.hs2.instantasp.net/Topic15761.aspx

By Ashwag - 3/5/2018 6:08:15 PM

Hi,

I have question regarding to residual  vs error term,  a‌‌re they different or can be use it interchangeably

Thanks‌‌
By NEAS - 4/16/2018 7:09:43 PM

 
Ashwag - 3/5/2018 6:08:15 PM
Hi,

I have question regarding to residual  vs error term,  a‌‌re they different or can be use it interchangeably

Thanks‌‌


They are not the same.

●    The residual is the observed value minus the fitted value; it depends on the sample values.
●    The error term is the random variable ε in the true regression equation.