In regression terms what does "best fit" mean? A) The estimated parameters, b₀ and b₁, are minimized. B) The estimated parameters, b₀ and b₁, are linear. C) The error terms are as small as possible. D) The largest error term is as small as possible.

Question

Quizplus · Accepted Answer

"Best fit" in regression terms means that the error terms (the differences between the observed values and predicted values) are as small as possible. Therefore, the correct choice is C. A, B, and D are not accurate definitions of "best fit" in regression.

In Regression Terms What Does "Best Fit" Mean