Residuals from regression model

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Aric LaBarr, Ph.D.

Senior Data Scientist, Elder Research

Linear Regression

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Regression Residuals

  • Ways to reduce residuals further:
    1. Add more important variables to the model
    2. Use time series if your residuals are related over time
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Examine Residuals

M_hi_full_res <- residuals(model_M_hi_full)

M_hi_full_res <- xts(M_hi_full_res, order.by = dates_train)

hist(M_hi_full_res)
plot(M_hi_full_res)
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Residual Plots

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Let's practice!

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