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Observed/Fitted Values and Residuals on Categorical Variables

Explore how to interpret observed values, fitted values, and residuals in the context of categorical variables with basic regression techniques. Understand how residuals reveal deviations from group means and use R tools like moderndive to contextualize data by categories such as country.

We'll cover the following...

Recall that we defined the following three concepts:

  • Observed values𝑦𝑦, or the observed value of the outcome variable

  • Fitted values y^ \hat y ...