Question

What is the role of the stochastic error term in regression analysis

Answer 1

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The stochastic error term Stochastic error term: a term that is added to a regression equation to introduce all of the variation in Y that cannot be explained by the included X's.

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Answer 2

Answer:

The stochastic error term Stochastic error term: a term that is added to a regression equation to introduce all of the variation in Y that cannot be explained by including x