+ Reply to Thread
Results 1 to 3 of 3

Thread: RSS Residual Sum Squares

  1. #1
    Points: 29, Level: 1
    Level completed: 58%, Points required for next Level: 21

    Posts
    2
    Thanks
    3
    Thanked 0 Times in 0 Posts

    RSS Residual Sum Squares




    Hi

    im analysing my dissertation which has a OLS model. My RSS figures are very very big in some cases above 15000. I know a high RSS indicates a poorly fitted model. i have run the regression for 6 different countries using 154 observations per variable using 3 variables.

    My dependant variable is CPI. my explanatory variables are gold prices, crude oil prices and food prices.

    please help!!

  2. #2
    Omega Contributor
    Points: 38,432, Level: 100
    Level completed: 0%, Points required for next Level: 0
    hlsmith's Avatar
    Location
    Not Ames, IA
    Posts
    7,006
    Thanks
    398
    Thanked 1,186 Times in 1,147 Posts

    Re: RSS Residual Sum Squares

    I don't use linear reg much, but it is the residual sum of squares, so if you are working with big numbers it will be big. Given that, 15,000 may not be an indicator of poor fit, since I believe it is contextual.


    Thanks.
    Stop cowardice, ban guns!

  3. #3
    Fortran must die
    Points: 58,790, Level: 100
    Level completed: 0%, Points required for next Level: 0
    noetsi's Avatar
    Posts
    6,532
    Thanks
    692
    Thanked 915 Times in 874 Posts

    Re: RSS Residual Sum Squares


    The best way to decide if it is big is to try to find in the literature what other models have. Of course the problem with that is you may not find much in the literature or they may not report this value.
    Another way to determine if its too high is too look at other measures of fit in linear regression.
    "Very few theories have been abandoned because they were found to be invalid on the basis of empirical evidence...." Spanos, 1995

+ Reply to Thread

           




Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts






Advertise on Talk Stats