# What is an overlay plot?

Hi,

I was wondering if someone could tell me what an overlay plot exactly is, in the context of linear regression.

Specifically, I have data to fit a model Y in terms of regressor variables x1 - x8 and the question asks me to

"Obtain the overlay plot of the fitted model on the actual values against the observed cases. Obtain the plot of the residuals against the fitted values."

What do I have to do here?

## Answers and Replies

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Overlay plot means putting a plot on top of another. You just, in this case put the fitted model on the top of the observed data, which means fit actual data with your linear regression model. Residual is calculated by using each actual datum subtract corresponding expected value on the regression line.

Overlay plot means putting a plot on top of another. You just, in this case put the fitted model on the top of the observed data, which means fit actual data with your linear regression model. Residual is calculated by using each actual datum subtract corresponding expected value on the regression line.

Thanks...got it!

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