Question

For the linear regression Y=b0+b1*X+e, which of the following statements is true?

a. R is trying maximize the e when finding the line of best fit
b. e is the distance between the actual Y and the predicted Y
c. The line of best fit can represent each point perfectly, simultaneously
d. b0 is the slope and b1 is the intercept

Answer 1

The statement that is true for the equation Y = b0 + b1 * X + e is that e is the distance between the actual Y and the predicted Y.

Step-by-step explanation:

The statement that is true for the equation Y = b0 + b1 * X + e is option b: e is the distance between the actual Y and the predicted Y.

The term 'e' represents the residual or the difference between the actual value of Y and the predicted value of Y. This term represents the error in the prediction made by the regression line. So, option b is the correct choice.