Lecture 3: Multiple Regression Model - McCombs School of Business
Lecture 3: Multiple Regression Model - McCombs School of Business
Lecture 3: Multiple Regression Model - McCombs School of Business
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Residuals in MLR<br />
As in the SLR model, the residuals in multiple regression are<br />
purged <strong>of</strong> any relationship to the independent variables.<br />
We decompose Y into the part predicted by X and the part due to<br />
idiosyncratic error.<br />
Y = Ŷ + e<br />
corr(X j , e) = 0 corr(Ŷ , e) = 0 12