Simple regression minimizes the distance from each data point to:
A) A trend line
B) The y-intercept
C) The error term
D) The x-axis

Question

Quizplus · Accepted Answer

Simple regression aims to find the best-fitting straight line that minimizes the sum of the squared distances between each data point and the trend line. This trend line will pass through the y-intercept and intersect with the x-axis at some point, but these factors are not the main focus of the regression analysis. The error term represents the difference between the predicted value and the actual value of the dependent variable, but it is not the target of minimization in simple regression. Therefore, the best answer is A, as minimizing the distance from each data point to the trend line is the main objective of the regression analysis.

Simple Regression Minimizes the Distance from Each Data Point To