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What Is a Statistical Process That Finds the Way to Make

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What is a statistical process that finds the way to make a design, system, or decision as effective as possible, for example, finding the values of controllable variables that determine maximal productivity or minimal waste?


Definitions:

Residuals

The differences between observed values and the values predicted by a model.

Confidence Interval

An aggregate of values, concluded from statistical review of samples, assumed to likely house the unknowable value of a population parameter.

Prediction Interval

A range of values that is likely to include the value of an unknown parameter for a future observation with a specified probability.

Heteroscedasticity

A condition in regression analysis where the variance of errors or the variability of a dependent variable is unequal across all levels of an independent variable.

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