In a multiple regression model, the mean of the residuals is equal to the variance of all combinations of levels of the independent variables.

Question

Quizplus · Accepted Answer

The mean of the residuals should be zero in a multiple regression model if the model is properly specified. The variance of all combinations of levels of the independent variables is a measure of the amount of multicollinearity in the model and is not related to the mean of the residuals.

In a Multiple Regression Model, the Mean of the Residuals