This is one of the basic questions asked in the interview related to linear regression.

𝐏𝐞𝐫𝐩𝐞𝐧𝐝𝐢𝐜𝐮𝐥𝐚𝐫 𝐨𝐟𝐟𝐬𝐞𝐭: Perpendicular distance of every data sample with the predicted line is calculated, and weights get updated accordingly.

𝐕𝐞𝐫𝐭𝐢𝐜𝐚𝐥 𝐎𝐟𝐟𝐬𝐞𝐭: Direct difference of prediction and the actual values are calculated and weights get updated accordingly.

With this explanation, one can easily guess the answer, which is "Vertical Offset".

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