Question

You run a regression estimating sales for your company, as your model becomes more accurate the residual will also

•Become more negative
•Decrease
•Increase
•Become more positive

Answer 1

Answer: More Negative!

Step-by-step explanation:

As your model becomes more accurate, the residuals will become more negative. This is because when the model is more accurate, it will be better able to predict the actual sales and the difference between the actual sales and the predicted sales (the residuals) will decrease. As the difference decreases, the residuals will become more negative.