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The difference between an observed y value and the value predicted by the line is called the:
AThe residual
BThe slope
CThe intercept
DA coefficient
Answer & Solution
Correct answer: A. The residual
1. Each point sits some vertical distance from the fitted line.
2. That gap is what the fitting procedure works to make small.
3. The term y0 minus y-hat is called the error or residual.
4. Slope and intercept describe the line itself rather than a point's distance from it.
_Source: OpenStax Introductory Statistics 2e (CC BY 4.0), Ch 12 'Linear Regression and Correlation', sections 12.1-12.6_
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