Or sometimes the colloquial term people have picked up is a simplified tool for getting the right point across.

Just because it's guessing using math doesn't mean it isn't hallucinating in a sense the additional data. It did not exist before and it willed it into existence much like a hallucination while being easy for people to catch onto quickly as not trustworthy thanks to previous definitions and understanding of the word.

Part of language is finding the right words to use so that people can quickly understand topics even if it means giving up nuance but absolutely it should be based on getting them to the right conclusion even if in a simplified form which doesn't always happen when there is bias. I think this one works just fine.