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Formal Definition of the Predicted Value (ŷ)

The predicted value, denoted as y^\hat{y}, is formally determined as the argument that optimizes a specific objective function. This is expressed in the general form $\hat{y}$ = arg ..., where arg typically represents either argmin (argument of the minimum) or argmax (argument of the maximum). The choice between argmin and argmax depends on whether the objective is to minimize a loss function or maximize a likelihood function, respectively.

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Updated 2025-10-08

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