In Regression Terms What Does "Best Fit" Mean

question 41

Multiple Choice

In regression terms what does "best fit" mean?

• A)The estimated parameters,b₀ and b₁,are minimized.
• B)The estimated parameters,b₀ and b₁,are linear.
• C)The error terms are as small as possible.
• D)The largest error term is as small as possible.

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Definitions:

Free Association

A psychoanalytic technique where the patient speaks freely to uncover repressed thoughts and feelings.

Better-than-average Effect

A cognitive bias where individuals overestimate their own qualities and abilities relative to others.

Self-serving Bias

A common tendency for individuals to attribute positive outcomes to their own character but attribute negative outcomes to external factors.

Narcissism

A personality trait characterized by an inflated sense of self-importance, need for admiration, and lack of empathy for others.