jäännöstermin

Jäännöstermin, often translated as "residual term" or "error term" in English, is a concept found in statistical modeling and econometrics. It represents the part of a dependent variable that cannot be explained by the independent variables included in the model. In simpler terms, it is the difference between the observed value of the dependent variable and the value predicted by the regression model.

The jäännöstermin arises due to several factors. It can capture random variation in the data that is not systematically related to the independent variables. It can also account for omitted variables, which are factors that influence the dependent variable but were not included in the model. Furthermore, measurement errors in the variables can contribute to the jäännöstermin.

In regression analysis, a fundamental assumption is that the jäännöstermin has certain properties, such as being normally distributed with a mean of zero and constant variance. Violations of these assumptions can lead to biased estimates and unreliable statistical inferences. Therefore, analyzing the jäännöstermin is a crucial step in model diagnostics, helping researchers assess the validity and adequacy of their statistical models. Examining the patterns within the jäännöstermin can provide insights into potential improvements for the model, such as the inclusion of additional variables or the use of a different functional form.