How is the Variance Residual calculated?

The calculation of Variance Residual is based on the concept of understanding how much of the total variance in a set of data is not explained by the factors being measured or modeled. The correct formula for this is derived from the context of analysis of variance (ANOVA) or regression analysis.

In statistical terms, the Variance Residual represents the variability that remains after accounting for the effects of other variables in the model—essentially, it looks at what’s left over when we consider the variance explained by the subject or groups in the study. By subtracting the variance attributed to subjects from the variance within the groups, we obtain the variance residual, illustrating the unexplained variability.

Thus, the formula for Variance Residual, which is used in various statistical models, is indicative of the difference between the variance that is measured within each subject or group and broader classifications. This provides insight into how much variance is not captured by the model and remains as residual or leftover variance.