Residual Variance Calculation

Simple Linear Regression: Estimating the Residual Variance

One of the standard assumptions in SLR is: Var(error)=sigma^2. In this video we derive an unbiased estimator for the residual variance sigma^2. Note: around 5:00, I mistakenly say the dividing by n over estimates the residual variance. I should have said that dividing by n under estimates the residual variance. The point is that it is a biased ...

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