Predicted Values

Definition

Predicted values are the estimated values of the response variable based on a regression model. They are calculated using the regression equation and the given predictor variables.

Analogy

Think of predicted values as a weather forecast. Just like meteorologists use historical data and current conditions to predict future weather, statisticians use regression models to predict future outcomes based on past data.

Related terms

Residuals: Residuals are the differences between the observed values and the predicted values in a regression model.

Regression Equation: The regression equation is an equation that represents the relationship between the predictor variables and the response variable in a regression model.

Outliers: Outliers are extreme observations that deviate significantly from other observations in a dataset, which can affect predicted values.