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Tag: residual

The Difference Between Residual and Error in Statistics

By Kanda Data / Date Aug 11.2025 / Category Statistics

For those of you who are learning statistics, you’ve probably come across theories explaining the concepts of residual and error. At first glance, they seem almost identical, and many people even think they mean the same thing. However, in statistics, residual and error actually have different meanings.

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How to Detect Normally Distributed Data in Linear Regression Analysis

By Kanda Data / Date Jul 28.2025 / Category Econometrics

When you conduct data analysis using linear regression, there are several assumptions that must be met. We need to fulfill these assumptions to ensure that the estimation results are consistent and unbiased.

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What Is a Residual Value in Statistics?

By Kanda Data / Date Jun 14.2025 / Category Statistics

If you’re working with data analysis using linear regression, especially the Ordinary Least Squares (OLS) method, it’s important to understand what a residual is. Why does this matter? Because several assumption tests in OLS regression rely heavily on residual values. That’s why you need a solid understanding of what residuals are and how to calculate them.

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Statistics

The Difference Between Residual and Error in Statistics

By Kanda Data / Date Aug 14.2024

In the field of statistics, the terms “residual” and “error” are often used interchangeably. Many researchers and practitioners consider these terms to have the same meaning, but in reality, they represent significantly different concepts.

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Econometrics

Assumptions Required in Multiple Linear Regression Analysis Using Ordinary Least Squares (OLS) Method

By Kanda Data / Date Sep 26.2023

Multiple linear regression with the Ordinary Least Squares (OLS) method is one of the statistical techniques used to assess the influence of two or more independent variables on a dependent variable. The OLS method is carried out by minimizing the sum of squared errors between the model’s predictions and the actual values of the dependent variable.

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Assumptions of Linear Regression

Understanding Normality Test in Ordinary Least Squares Linear Regression

By Kanda Data / Date Sep 19.2023

Linear regression analysis examines the influence of independent variables on dependent variables. This analysis can take the form of simple linear regression or multiple linear regression. Most linear regression analyses utilize the Ordinary Least Squares (OLS) method.

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Econometrics

Definition and Purpose of Determining Residual Values in Linear Regression Analysis

By Kanda Data / Date Sep 12.2023

In linear regression analysis, residual values play a crucial role. The residual value is the difference between the actual and predicted Y values. The actual Y value can be obtained from observations or samples of the dependent variable.

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