In a multiple regression, which is an incorrect statement about the residuals?
A)They may be used to test for multicollinearity.
B)They are differences between observed and estimated values of Y.
C)Their sum will always equal zero.
D)They may be used to detect heteroscedasticity.

Question

Quizplus · Accepted Answer

Residuals are primarily used to check the fit of a model, detect outliers, and test assumptions like homoscedasticity (constant variance of errors). They are not used to test for multicollinearity. Multicollinearity is assessed through other diagnostics, such as variance inflation factors (VIFs) or condition indices, not through residuals.

In a Multiple Regression, Which Is an Incorrect Statement About