What is a 'Residual Sum Of Squares  RSS'
A residual sum of squares (RSS) is a statistical technique used to measure the amount of variance in a data set that is not explained by a regression model. The residual sum of squares is a measure of the amount of error remaining between the regression function and the data set. A smaller residual sum of squares figure represents a regression function which explains a greater amount of the data.
BREAKING DOWN 'Residual Sum Of Squares  RSS'
It is not possible to draw conclusions about the correctness of the regression function solely using the residual sum of squares. Since a sufficiently complex regression function can be made to closely fit virtually any data set, further study is necessary to determine whether the regression function is, in fact, useful in explaining the variance of the dataset. Typically, however, a smaller residual sum of squares is ideal.
Financial markets have increasingly become more quantitatively driven, as such, in search of an edge, many investors are using advanced statistical techniques to aid in their decisions. Big data, machine learning, and artificial intelligence applications further necessitate the use of statistical properties to guide contemporary investment strategies.
The residual sum of squares in one of many statistical properties enjoying a renaissance.

Least Squares
Least squares is a statistical method used to determine a line ... 
Residual Income
Residual income is the amount of net income generated in excess ... 
Regression
A statistical measure that attempts to determine the strength ... 
Line Of Best Fit
The line of best fit is an output of regression analysis that ... 
Homoskedastic
Homoskedastic refers to a condition in which the variance of ... 
Stepwise Regression
Stepwise regression is the stepbystep iterative construction ...

Investing
Regression Basics For Business Analysis
This tool is easy to use and can provide valuable information on financial analysis and forecasting. Find out how. 
Trading
The Linear Regression of Time and Price
This investment strategy can help investors be successful by identifying price trends while eliminating human bias. 
Investing
Square Seen Rising Higher on Bitcoin, M&A
Square's stock already has risen nearly 60% in the past year, far outpacing the S&P 500. 
Investing
Analysts: What’s Driving Square Stock in 2017?
Analysts applaud Jack Dorsey's payment platform as it transforms into a onestop shop for merchants. 
Investing
Square's Stock Is Facing Steeper Declines
Despite falling by nearly 16% from its highs in 2018, shares of Square are still up by 40% on the year. 
Tech
Lending Club, a Square Rival, Soars on Q3 (LC, SQ)
Nontraditional online lending platforms post betterthanexpected third quarter earnings, sending fintech stocks on the way to recovery. 
Investing
Square's Q4 Loss Was Much Narrower Than Expected
Square (NYSE: SQ) saw its stock close 14% higher on the day the mobile payment and financial services specialist released its fourthquarter and full 2016 results. For the quarter, Square's ... 
Investing
4 Reasons Square’s Gains Can Multiply: Jefferies
The fintech platform, up 180% YTD, could see a major uptake on multiple new growth drivers. 
Investing
Square Is Winning With Its Cash App: Nomura
Square is making swift strides against its paymentprocessing competitors. 
Tech
Fintech: Square Maintains Hold on Mobile Payments (SQ)
With the announcement of faster chip card readers, Square's bread and butter remains in mobile payments.

How is residual value of assets taxed?
Find out how and when taxes are assessed on the different kinds of residual value, including the residual value on a leased ... Read Answer >> 
How is residual value of an asset determined?
Understand what the residual value of an asset is and how the residual value of an asset is calculated. Learn how residual ... Read Answer >> 
How can I create a linear regression in Excel?
Learn the steps involved in creating a linear regression chart in Microsoft Excel. A linear regression is a data plot that ... Read Answer >> 
What is the difference between standard deviation and variance?
Understand the difference between standard deviation and variance; learn how each is calculated and how these concepts are ... Read Answer >> 
How can I measure portfolio variance?
Find out more about portfolio variance, the formula to calculate portfolio variance and how to calculate the variance of ... Read Answer >> 
What is the difference between standard deviation and average deviation?
Understand the basics of standard deviation and average deviation, including how each is calculated and why standard deviation ... Read Answer >>