A polynomial of the chosen degree is least-squares fit (Gaussian elimination on the normal equations, with a small ridge term for numerical stability) to several independent noisy resamples of the same hidden function. Bias² measures how far the average fitted curve sits from the truth; variance measures how much the fits disagree with each other.
- Low degree → curves agree with each other but miss the true shape (underfitting, high bias).
- High degree → curves chase each sample's noise and scatter wildly (overfitting, high variance).
- Total error ≈ bias² + variance is minimised at an intermediate complexity.