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How does the ArcGIS calculate the �??residual�?� (e)?

Question asked by on May 23, 2012
How does the ArcGIS calculate the �??residual�?� (e) knowing that the provided points are the source and destination?

I�??m wondering based on which equation does the residual is calculated.

As we perform the georeferencing, green and red points (screenshots below) are produced and the residual is the distance between them. What does the green point represent? What does the red point represent? based on what the ArcGIS produces the green point?


why the residual is calculated after adding the 4th point?

Thank you for the help