In a distribution function Y(x) of regression model, Y = a + bx + e, the error term is defined as ∑e = 0. Which one of the following equations is correct as Y, Y̅ and Ŷ denote given value, mean value, and predicted value of dependent variable Y, respectively.
1
∑(Y - Y̅) = 0
2
∑(Y - Y̅) = minimum
3
∑(Y - Ŷ) = 0
4
∑(Y - Ŷ) = minimum