Question

Describe how predicted y-values plotted near the point of averages differ in their accuracy compared to...

Describe how predicted y-values plotted near the point of averages differ in their accuracy compared to predicted y-values plotted further away from the point of averages.

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Answer #1

The predicted y-values plotted near the point of averages are more accurate than those of points predicted further away from the point of averages. As in regression where the function estimated is the average of y given the value of x, the estimates are more reliable where it is closer to the mean of the fitted data. Hence in estimation of y-values when points are further away might lead to bias in the prediction. Hence the accuracy and reliability of far points are lower than the closer points.

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