residualize
Residualize is a term used in statistics and econometrics to describe the process of removing the effect of one or more variables from another variable. This is often done to isolate the impact of a specific variable of interest or to prepare data for further analysis. The resulting variable, after the removal of the effects of other variables, is called the residual.
In practical terms, residualizing can be achieved through regression analysis. One common method involves regressing the
For example, if a researcher is interested in the relationship between education and income, but wants to
The concept of residualizing is fundamental in many statistical modeling techniques, as it allows for a more