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Although I was able to find the definition of predicates online at MSDN:

Is an expression that evaluates to TRUE, FALSE, or UNKNOWN. Predicates are used in the search condition of WHERE clauses and HAVING clauses, the join conditions of FROM clauses, and other constructs where a Boolean value is required.

I have been unable to find the definition of what a residual predicate is. What is a residual predicate?

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Try this question on Stack Overflow –  Gaius Apr 17 '11 at 15:14

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A residual predicate is one that has an hidden extra cost because the predicate has to be tested again on every combination of rows that is fetched. Probe Residual when you have a Hash Match – a hidden cost in execution plans

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