A instrument that quantifies the discrepancy between noticed information and values predicted by a mannequin, usually in regression evaluation. The machine computes the sum of the squares of the variations between precise and predicted values. For example, if a regression mannequin predicts a home value of $300,000, however the precise value is $320,000, the squared residual is $400,000,000. The calculator repeats this course of for every information level and sums the outcomes.
This calculation is key in assessing the goodness-of-fit of a statistical mannequin. A decrease worth typically signifies a greater match, suggesting that the mannequin precisely describes the information. It additionally performs a vital position in evaluating completely different fashions; the mannequin with the decrease worth is commonly most well-liked. Traditionally, the guide calculation of this metric was a time-consuming course of, however the introduction of digital calculators and statistical software program has streamlined its computation and elevated its accessibility.