On average, the differences between the actual and predicted values of Y A) are equal to b₀. B) sum to an unknown value. C) are distributed uniformly. D) sum to zero.

Question

Quizplus · Accepted Answer

The sum of the differences between the actual and predicted values of Y is equal to zero. This is because the regression line is calculated to minimize the sum of the squared differences between the actual and predicted values of Y. Therefore, the average of these differences will always sum to zero.

On Average, the Differences Between the Actual and Predicted Values