Richard builds a predictive model based on data collected from the highway gas mileage of a number of brand name tires. The differences between actual data points and predicted ones are referred to as:

Question

Quizplus · Accepted Answer

The differences between actual data points and predicted ones are referred to as residuals.
Key Takeaway: Residuals are the differences between actual data points and predicted ones. Predicted data points or responses are usually derived from a predictive model such as that developed from a simple regression model. The larger residuals are, the less likely that the predictive model provides accurate predictions of values.

Richard Builds a Predictive Model Based on Data Collected from the Highway