How to Calculate Sum of Squares?

We will discuss steps to calculate the sum of squares for both the residual method and regressive method in the following headings.

How to Calculate Residual Sum of Squares?

To calculate the residual sum of squares, we can use the following steps:

Step 1: Organize the data to find the expected value.

Step 2: Calculate the residual i.e., y_i – ŷ_i.

Step 3: Use the following formula to calculate the Residual Sum of Squares.

Step 4: The result is the required value of the Residual Sum of Squares.

How to Calculate Sum of Squares Due to Regression?

To calculate the sum of squares due to regression we can use the following steps:

• Step 1: Calculate the mean of the given data
• Step 2: Calculate the difference between the mean and each data point.
• Step 3: Calculate the square of the value obtained in step 2.
• Step 4: Sum all the values obtained from Step 3.

Learn more about Sum of Squares

Residual Sum of Squares is one of the types of sum of squares in regression which is used to measure the dispersion of the data points. The sum of squares can also be used to calculate the variance in the values of assets in the case of accounting. If the value of the sum of squares is higher, it represents a higher variance from the mean value and vice versa. The sum of squares is generally of 3 types i.e. Total Sum of Squares, Regressive or Regression Sum of Squares, and Residual Sum of Squares. In this article, we will study majorly the types of Residual Sum of Squares. Other than this we will also discuss both other types in bried as well.