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

Question

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

Quizplus · Accepted Answer

This statement is true. The residuals are the differences between the observed values and the predicted values, which represent the error variance in the model. The sum of squared residuals (also known as the sum of squared errors) is minimized in regression models to obtain the best-fit line.

The Residuals Are Observations of the Error Variable