What criteria are used in selecting one particular regression line through the data set? Why is it considered a best fit line? Compare with the mean as a measure of central tendency.
a) The criteria used in selecting a regression line include minimizing the sum of squared differences between the observed and predicted values. It is considered a best fit line because it minimizes the overall prediction error.
b) The criteria used in selecting a regression line include maximizing the sum of squared differences between the observed and predicted values. It is considered a best fit line because it maximizes the overall prediction accuracy.
c) The criteria used in selecting a regression line include minimizing the sum of absolute differences between the observed and predicted values. It is considered a best fit line because it minimizes the overall prediction error.
d) The criteria used in selecting a regression line include maximizing the sum of absolute differences between the observed and predicted values. It is considered a best fit line because it maximizes the overall prediction accuracy.