Hi folks, In the regression formula: Y= beta0 + beta1 times X + e Where does the “e” value come from? I know it’s the error term, but do you use it in the calculations that have to do with regression analysis? Thanks.
It’s the ‘Epsilon’ (adjustment factor) sibling to S.E. [STD/SQRT(N)], Betas, significance levels (alpha’s)
It’s the error term - possibly normal/always mean 0. It’s what makes Y a random variable.