Hello, Can I ask a simple question, that probably not worth posting in crossvalidated.I am confused. I was taught this formula Var(resid)=Var(y)-Var(yhat). And then to get unbiased s^2=(N/N-k)*Var(resid). But what I discovered is that this formula provides us with Var(resid)=Var(y)-Var(yhat) sample variance.
Shouldn't the formula for s^2 then be s^2=(N-1)/(N-k)*Var(resid) ?
I mean for this particular case, should I modify the formula of s^2 or not?