Economy, asked by saimaarshad1, 9 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 khushi02022010

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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