What is the role of the stochastic error term ui in regression analysis?

Social Studies

1 answer:

loris [4]2 years ago

4 0

Answer: See explanation

Explanation:

Stochastic error term simply means the error margin that can be found in a particular statistical model. They're the deviations that we've with regards to the regression lines which then makes up for the difference or the deviation between the model's theoretical value and its actual results.

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What is the role of the stochastic error term ui in regression analysis?​

What is the role of the stochastic error term ui in regression analysis?