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Q164Section III (Statistics)164 of 190

Two standard OLS orthogonality identities: residuals sum to zero and are orthogonal to fitted values

Consider a multiple linear regression model y‾=XB‾+E‾n+1\underline y=X \underline B+\underline E_{n+1} and suppose y^i\hat y_i and ei i=1,…,ne_i\ i=1,\dots,n are the fitted values of response variable y and residuals respectively. Then:

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