Google+1. The Definition of EBITDA: It is an acronym for Earnings Before Interest Taxes Depreciation and Amortization. EBITDA is often used as a measure of a businessâs cash flow. Also it is used frequently in many business valuation formulas, depending on the businessâs specific industry.he Definition of EBITDA: It is an acronym for Earnings Before Interest Taxes Depreciation and Amortization.
However, a terminological difference arises in the expression mean squared error (MSE). The mean squared error of a regression is a number computed from the sum of squares of the computed residuals, and not of the unobservable errors. If that sum of squares is divided by n, the number of observations, the result is the mean of the squared residuals.
The regression line predicts the average y value associated with a given x value. Note that is also necessary to get a measure of the spread of the y values around that average. To do this, we use the root-mean-square error (r.m.s. error). To construct the r.m.s. error, you first need to determine the residuals. Residuals are the difference between the actual values and the predicted values. I denoted them by , where is the observed value for the ith observation and is the predicted value.