The OLS residuals (A) can be calculated by subtracting the fitted values from the actual values. (B) can be calculated using the errors from the regression function. (C) are unknown since we do not know the population regression function. (D) should not be used in practice since they indicate that your regression does not run through all your observations.

Question

Mathematics

Guest

19 September, 17:32

The OLS residuals (A) can be calculated by subtracting the fitted values from the actual values. (B) can be calculated using the errors from the regression function. (C) are unknown since we do not know the population regression function. (D) should not be used in practice since they indicate that your regression does not run through all your observations.

+2

Answers (1)

Know the Answer?

Toby Higgins · Answer 1

Answer: The correct answer is A) can be calculated by subtracting the fitted values from the actual values.

Step-by-step explanation:

A. it can be calculated by subtracting the fitted values from the actual values.

(y=y^+resid) so, resid=y-y^ Yes.

B. can be calculated using the errors from the regression function.

(y=β0+β1x+e is unknown)

can be calculated using the errors from the regression function.

(y=β0+β1x+e is unknown)

C. are unknown since we do not know the population regression function. (y=β0+β1x+e is unknown, but we need resid)

D. should not be used in practice since they indicate that your regression does not run through all your observations.