View/Actual,Fitted,Residual - it is quite strange
Posted: Sat Jun 21, 2014 5:04 am
Hello all,
After constructing a simple linear regression, I go to View/Actual,Fitted,Residual >> Actual, Fitted, Residual Graph.
It is quite strange that the Fitted Line is not straight. To my knowledge, since this is linear regression, it is supposed to be straight, not a line with so many break. I don't understand why and hope someone could help me interpreting this matter.
I attach Eview file, just click on eq01.
Thank you for reading,
Regard,
After constructing a simple linear regression, I go to View/Actual,Fitted,Residual >> Actual, Fitted, Residual Graph.
It is quite strange that the Fitted Line is not straight. To my knowledge, since this is linear regression, it is supposed to be straight, not a line with so many break. I don't understand why and hope someone could help me interpreting this matter.
I attach Eview file, just click on eq01.
Thank you for reading,
Regard,