The residuals are observations of the error variable . Consequently, the minimized sum of squared deviations is called the sum of squares for error, denoted SSE.

Question

The residuals are observations of the error variable  . Consequently, the minimized sum of squared deviations is called the sum of squares for error, denoted SSE.

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Residuals represent the difference between the predicted values and the actual observed values, which is essentially the error term. Therefore, the minimized sum of squared residuals is the sum of squares for error, denoted SSE.

The Residuals Are Observations of the Error Variable