Simple regression minimises 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 trend line that best fits the data points. This means that the regression line should have the smallest distance to each data point. Therefore, the correct answer is A, which states that the regression line minimizes the distance to each data point. The y-intercept and x-axis are not minimized by simple regression, and the error term is the difference between the predicted value and the actual value and is not minimized by the regression line itself.

Simple Regression Minimises the Distance from Each Data Point to