The difference between the residual term and the error term in regression theory and analysis is that the residual is derived from estimating the regression equation for the population whereas the error term is derived from estimating the regression equation for the sample the residual is derived from estimating the regression equation for the sample whereas the error term is derived from estimating the regression equation for the sampling distribution the residual represents the variation in the dependent variable that is not accounted for in the sample regression function, whereas the error term represents the random component associated with the dependent variable in the population the error term represents the variation in the dependent variable that is not accounted for in the sample regression function, whereas the residual represents the random component associated with the dependent variable in the population the residual represents random effects such as measurement error which generally cancel out, whereas the error term represents the effect of incorrect specification of the sample regression function

The Answer is in the image, click to view ...

Question: The difference between the residual term and the error term in regression theory and analysis is that: the residual is derived from estimating the regression

The difference between the residual term and the error term in regression theory and analysis is that:

the residual is derived from estimating the regression equation for the population whereas the error term is derived from estimating the regression equation for the sample
the residual is derived from estimating the regression equation for the sample whereas the error term is derived from estimating the regression equation for the sampling distribution
the residual represents the variation in the dependent variable that is not accounted for in the sample regression function, whereas the error term represents the random component associated with the dependent variable in the population
the error term represents the variation in the dependent variable that is not accounted for in the sample regression function, whereas the residual represents the random component associated with the dependent variable in the population
the residual represents random effects such as measurement error which generally cancel out, whereas the error term represents the effect of incorrect specification of the sample regression function

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock