Intro to Business Analytics
Residuals are the differences between the observed values and the predicted values from a statistical model. They are a crucial component in model evaluation, helping to assess how well a model fits the data. Analyzing residuals allows for the identification of patterns that might indicate issues with the model, such as non-linearity or outliers, and helps determine if the assumptions of the model are being met.
congrats on reading the definition of Residuals. now let's actually learn it.