Question

10. Using notes and or the text, explain the meaning of TSS = ESS + RSS. Add an appropriate diagram to indicate the distances representing TSS, ESS, and RSS on a positively sloping regression line with b1 > 0 and b2 > 0.

Answer 1

The TSS is the Total Sum of Square; it defined as the sum of all observation, differences in all observations or squared difference in all observation from the aggregate mean.

ESS is the Explained Sum of Square; it defined as the square of the deviation of the predicted values from the mean of all observation

RSS is the Residual Sum of Squares; it is the sum of squared residuals. It is the difference between data and fitted models.

Generally, the TSS is the sum of both ESS and RSS. Graphically,