based on the formula above, and the actual GDP as recorded by the World Bank. Projected and Actual GDP Figures for EU Member States, and Residual Squares Country Consumer Spending Most Recent ...

Here’s how you calculate the standard deviation of the residuals for a simple linear equation. The standardized residual is then the ratio of the individual raw residual divided by the standard ...

Put another way, the formula is: Image source: The Motley Fool Growing companies often use the residual income model to determine the best price at which to issue new equity to finance expansion.