Residuals

n. disabilities remaining after a patient has healed from an illness or injury; royalties paid to an actor or director or a writer (for repeated use of a movie, play, radio or television commercial in which the actor appears)

n. remainder; something left over; royalties paid to a performer or director or a writer (for repeated use of a movie, play, radio or television commercial in which the performer appears); positive or negative numerical difference between 2 numbers

In general, a residual is a positive or negative numeric difference between two numbers. For its use in mathematics, see residual (mathematics).In statistics, residual is the observed value minus the predicted value; see errors and residuals in statistics.In business, a residual payment is one of an ongoing stream of payments for the completion of past achievements. The entertainment industry use of the word refers to a payment made to the creator of performance art (or the performer in the work) for subsequent showings or screenings.In the context of insolvent businesses, the residual claimants (shareholders, partners, or sole proprietor) to a bankrupt organization receive any money that is left after all assets are sold and all creditors paid.In video compression see Residual frame.In finance, a residual (or balloon) can refer to a lump sum owed to the financier at the end of a loan's term, expressed either as a dollar value or a percentage of the amount borrowed.
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Noun
1. something left after other parts have been taken away; "there was no remainder"; "he threw away the rest"; "he took what he wanted and I got the balance"
(synonym) remainder, balance, residue, residuum, rest
(hypernym) part, portion, component part, component
(hyponym) leftover, remnant
2. (often plural) a payment that is made to a performer or writer or director of a television show or commercial that is paid for every repeat showing; "he could retire on his residuals"
(hypernym) payment
(classification) plural, plural form
Adjective
1. relating to or indicating a remainder; "residual quantity"
(synonym) residuary
(pertainym) residue

(1) Parts of stock returns not explained by the explanatory variable (the market-index return). They measure the impact of firm-specific  events during a particular period. (2) Remainder cash flows generated by pool collateral and those needed to fund bonds supported by the collateral.

Residuals are differences between the observed values and the corresponding values that are predicted by the model and thus they represent the variance that is not explained by the model. The better the fit of the model, the smaller the values of residuals. The ith residual (ei) is equal to:
ei = (yi - yi-hat)
where
yi is the ith observed value
yi-hat is the corresponding predicted value
See, Multiple Regression . See also, standard residual value , Mahalanobis distance , deleted residual and Cook ’s distance .