Residual Plot

A residual plot is a graph used in data analysis to assess how well a model predicts actual outcomes. It plots the differences between observed values and predicted values (called residuals) against the predicted values themselves. If the points are randomly scattered without a pattern, it suggests the model is appropriate. However, if there's a clear pattern, it indicates the model may not be capturing all the underlying trends, signaling that improvements or a different model might be needed. Residual plots help identify issues like non-linearity or unequal variability in the data.