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In regression analysis, a residual plot is a scatter plot where the independent variable (x) is plotted on the horizontal (x-) axis while the residual is on the vertical (y-) axis. For each data point, there’s one residual. The answer is quite simple: a residual (e) is the difference between the observed value (y) and the predicted value (ŷ).įor example, if your observed value is “ 2” while the predicted value equals “ 1.5,” the residual of this data point is “ 0.5”.
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