Question

Which of the following is correct with respect to residuals?

(a) Positive residuals are above the line, negative residuals are below

(b) Positive residuals are below the line, negative residuals are above

(c) Positive residuals and negative residuals are below the line

(d) All of the mentioned

I have been asked this question in final exam.

This intriguing question originated from Introduction to Regression Models topic in section Statistical Inference and Regression Models of Data Science

Answer 1

Correct choice is (a) Positive residuals are above the line, negative residuals are below

The explanation is: Residuals can be thought of as the outcome with the linear association of the predictor removed.