Residuals Statistics Example 4

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Example 4

hard
A model predicts values 18, 22, and 26 for three points, while the actual values are 20, 21, and 30. Find the residuals and identify which point has the largest underprediction.

Solution

  1. 1
    Step 1: Residuals are actual minus predicted, so the residuals are 20โˆ’18=220-18=2, 21โˆ’22=โˆ’121-22=-1, and 30โˆ’26=430-26=4.
  2. 2
    Step 2: The largest underprediction is the third point because it has the largest positive residual, 44.

Answer

Residuals: 2, -1, and 4. The third point has the largest underprediction.
Positive residuals mean the model predicted too low, while negative residuals mean it predicted too high. Comparing residuals helps identify where a model fits poorly.

About Residuals

A residual is the difference between an observed data value and the value predicted by a statistical model, calculated as residual=yobservedโˆ’ypredicted\text{residual} = y_{\text{observed}} - y_{\text{predicted}}. Positive residuals mean the model underestimated; negative residuals mean it overestimated.

Learn more about Residuals โ†’

More Residuals Examples