Show that the residuals in the bivariate regression model sum to zero. What is the interpretation...

Show that the residuals in the bivariate regression model sum to zero. What is the interpretation of this result?

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Nothe that

The residuals should sum to zero. Notice this is the same as the residuals having zero mean. If the residuals did not have zero mean, in effect the average error is not zero in the sample. This enables us to get estimates like BLUE using Ordinary Least squares system which assumes that the sum of residuals is zero.

Rahul Sunny answered 1 year ago

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