Residual is the difference between the observed value and the predicted value. Observed value is the actual data point while predicted value is the value obtained from the regression equation. On a residual plot, it is the vertical difference between the observed point and the line
Residual Analysis is the study of residual plots to validate the goodness of a regression model. For a good model, the residuals have to be random and normally distributed
An application-oriented question on the topic along with responses can be seen below. The best answer was provided by Senthilkumar G on 19th Jun 2020
Applause for all the respondents - Raj Saxena, Rajeshwari, Senthilkumar G, Tushar Maradwar
Also review the answer provided by Mr Venugopal R, Benchmark Six Sigma's in-house expert.