Mean Squared Error

Domain: AI Fundamentals

🎯 Motivation

A loss function for regression: average of squared differences between predictions and true values.

📋 Concrete Example

Predict house price 4.2M, actual 4.0M. Error = 0.2M. Squared = 0.04. Average over all houses gives MSE.

🔗 Analogy

Like measuring how far your darts land from the bullseye, squaring the distances so big misses hurt more.