Residual Analysis

Residual analysis of a linear regression model is a great way to diagnose potential problems with your model. In this short video, Director of Data Science, Max Margenot, reviews how to diagnose your model based on a residual plot and correct some issues that you might find with log and Box-Cox transformations.

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Disclaimer
Quantopian provides this presentation to help people write trading algorithms - it is not intended to provide investment advice.

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In addition, the content neither constitutes investment advice nor offers any opinion with respect to the suitability of any security or any specific investment. Quantopian makes no guarantees as to accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances.

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• #residual_analysis
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• #linear_regression