ABSTRACT
Econometric software packages report much more than the slope and vertical intercept of the regression line. These residual statistics are covered in this chapter. There are two measures of goodness-of-fit: r2 and the SER. Then there are the standard errors of the estimators. Formulas are presented for each of these statistics, but the emphasis is on interpretation and gaining an intuitive interpretation of what the statistics measure. The chapter closes with a brief description of the concept of repeated sampling since it is critical to understanding the standard errors of the estimators. In all cases, the standard notation is used to represent each statistic.
