Question

The error term represents the vertical distance from any point to the a. value of the Y’s b. population regression line c. estimated regression line d. mean value of the X’s

Answer 1

B. Population regression line

Step-by-step explanation:

Error term refers to the sum of deviation within regression line which provides an explanation for the difference between the results of the model and actual observed results. It represents margin of error within a statistical model.

Error term is the distance from each point to the population regression line. It includes everything that differentiates your model from reality. Therefore, factors like nonlinearities, unpredictable effects, measurement errors, and omitted variables will be reflected.