Econometrics // Lecture 3: OLS and Goodness-Of-Fit (R-Squared)

Level: advanced

KeynesAcademy, 2013
Topic: methodology
Format: Tutorial
Duration: 00:12:14
Link: https://www.youtube.com/watch?v=8tAPsX0YuNE

First some properties about the Sum of squared residuals and the linear regression function are restated. In particular three properties that an ideal fitted regression line must fulfill are discussed. Then, the R squared is defined using the measures of the Sum of squared residuals, the total sum of squares and the sum of explained squares.

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