In multiple regression analysis, residuals (Y - Ŷ) are used to _____________.
A) Provide a global test of a multiple regression model
B) Evaluate multicollinearity
C) Evaluate homoscedasticity
D) Compare two regression coefficients

Question

Quizplus · Accepted Answer

Residuals are used to evaluate homoscedasticity, which is the equal variance assumption of regression analysis. They represent the difference between the observed value of the dependent variable and the predicted value based on the multiple regression model. By examining the distribution and patterns of residuals, we can determine if the model has equal variance across all values of the independent variables.

In Multiple Regression Analysis, Residuals (Y - Ŷ) Are Used