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The residuals of a model are the actual values minus the predicted values. Many statistical models make assumptions about the error, which is estimated by the residuals.
5
votes
2
answers
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Why does the OLS-intercept not just "de-mean" the residuals of the same model without interc...
mean(reg$residuals)
[1] -0.08965128
We see, that the estimated intercept has a value of -0.36404 (and the residuals have mean zero). … The same model without intercept reports a mean for the residuals of -0.08965. …
2
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3
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Compare RMSE for the same model but varying sample size
My empirical research is based on a variable $a_{i,t} \sim f(\mathrm{RMSE})$, i.e. it is based on the root mean squared error (RMSE) of a certain regression model $Y_{i,t} = f(X_{i,t}, \beta) + \epsil …