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Which one of the statement is true regarding residuals in regression analysis?

A. Mean of residuals is always zero

B. Mean of residuals is always less than zero

C. Mean of residuals is always greater than zero

D. There is no such rule for residuals.

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Solution: A

Sum of residual in regression is always zero. It the sum of residuals is zero, the ‘Mean’ will also be zero.

 

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