Teach Overfitting, Underfitting, and Cross-Validation dynamically.
These points represent the dataset elements exposed to the model during the learning phase. The mathematical curve adjusts itself exclusively to match these positions. When you increase the polynomial degree, notice how the blue line twists aggressively to reduce the Train Error score.
These points are strictly hidden from the fitting calculations to simulate "unseen" real-world data. They measure the true generalizability of the model. When overfitting occurs (high polynomial degrees), the curve fits the blue points perfectly but swings wildly away from these red points, causing a massive spike in Test / Validation Error.