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Answer: its estimated value using a fitted regression line based on the sample.
**Explanation:** - **Option A** is incorrect because the sum of squared deviations of the observations from the mean captures the variation of the dependent variable (often referred to as the total sum of squares, SST). The difference between an observation and the mean of the dependent variable is not the residual. - **Option B** is correct because the residual for the ith observation, denoted as e, represents the difference between the observed value of the dependent variable and its estimated value using the fitted regression line based on the sample. - **Option C** is incorrect because the error term (or simply the error) refers to the difference between the observed value of the dependent variable and its expected value based on the true underlying population relationship, not the residual.
Author: LeetQuiz Editorial Team
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With respect to simple linear regression, a residual is best described as the difference between the observed value of a dependent variable and:
A
its mean.
B
its estimated value using a fitted regression line based on the sample.
C
its expected value based on the true underlying population relationship.