What Residual is
In statistics, a residual is the difference between an observed value of a variable and its predicted value. Residuals are useful in determining the accuracy of a model.
Steps for Residual:
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Collect data on the observed values of a variable.
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Use a model to predict the values of the variable.
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Calculate the residual by subtracting the predicted value from the observed value.
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Analyze the residuals to determine the accuracy of the model.
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Make necessary adjustments to the model to improve accuracy.
Examples
- Residuals are used to assess the accuracy of a linear regression model.
- Residuals can be used to identify outliers in a given dataset.
- Residuals are used to check whether a dataset follows a normal distribution.
- Residuals can be used to identify which variables have a significant effect on the outcome of a model.
- Residuals can be used to identify if there is a lack of fit in a model.