Economy, asked by sanarajput057, 8 months ago

how SRF and PRF lead to the difference between error and residual? Elaborate with appropriate graphical representation?

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Answered by PrihuVerma

Answer:

Population regression function (PRF) is the locus of the conditional mean of variable y(dependent variable) for the fixed variable x(independent variable). Sample regression function (SRF) shows the estimated relation between explanatory or independent variable X and dependent variable Y

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