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The incoming and outgoing boundaries are the regular levels zero and one, and all critical points lie in the interior. Near the boundary use a collar coordinate as the function. The Morse handle-attachment theorem produces a relative chain group freely generated by the interior critical points. Thus $\chi (W,M_0)$ is the alternating sum of their Morse indices, regardless of how their critical values are ordered.

A critical point of a smooth map is an input; a critical value is an output reached from at least one such input. For the fold $F(x,y)=(x,y^2)$, all inputs $(a,0)$ are critical points of a smooth map, and all outputs $(a,0)$ are critical values. The identical coordinate pairs live in different copies of ${\mathbb{R}}^2$. To classify an output $(a,b)$, inspect its entire fiber of a function:For $b>0$ both inputs have matrix rank two, so the output is a regular value. For $b=0$ its input has matrix rank one, so the output is a critical value. For $b<0$ the fiber of a function is the empty set, and the output is a regular value despite being outside the image of a function.

In general, for a smooth map $f:X\to Y$, write $C_f$ for its set of critical points of a smooth map. Its set of critical values is $f(C_f)\subseteq Y$. Equivalently, $q\in Y$ is a critical value if some $p\in f^{-1}(q)$ has a differential that is not surjective. A regular value requires a surjective differential at every input in that fiber of a function. The universal condition holds vacuously for an empty fiber of a function: every output outside $f(X)$ is a regular value. These quantifiers are explicit in Loring W. Tu, An Introduction to Manifolds, Definition 8.22 and its two following remarks.

The distinction is useful when solving equations. For a smooth map $f:X^m\to Y^n$ between smooth manifolds without boundary and a regular value $q$ with nonempty fiber of a function, the regular level set theorem makes $f^{-1}(q)$ an embedded submanifold of dimension $m-n$, with tangent spaceThe implicit function theorem explains the freedom count: locally, $n$ independent equations fix $n$ coordinates and leave $m-n$ free. The rank-nullity theorem gives the same count for the displayed kernel of a linear map. See Eckhard Meinrenken, Differentiable Manifolds, Theorems 1.11 and 1.15 for the local projection description and its consequence for level sets.

For example, $H:{\mathbb{R}}^2\to \mathbb{R}$, $H(x,y)=x^2+y^2$, has gradient $(2x,2y)$ and just one critical point, the origin, with critical value zero. For $c>0$, its fiber of a function is the circle of radius $\sqrt{c}$, a one-dimensional embedded submanifold; negative $c$ are regular values with empty fibers. At $c=0$, the fiber of a function is a single point instead of a circle. A critical value does not force its fiber of a function to be nonsmooth: that singleton is itself a zero-dimensional embedded submanifold, but the regular dimension conclusion $2-1=1$ does not apply.

Nor does a single regular input certify a regular value. The scalar smooth function $h(t)=t^2(t-1)$ has $h^{-1}(0)=\{0,1\}$ and derivative $h^{\prime }(t)=3t^2-2t$. The input zero is a critical point, while the input one is regular because $h^{\prime }(1)=1$. Their shared output zero is nevertheless a critical value. Conversely, different critical points of a smooth map can share one critical value: $f(t)=(t^2-1{)}^2$ sends both critical inputs $-1$ and $1$ to zero. Counting inputs and counting critical outputs are different tasks.

Finally, for $G(t)=(t,t^2):\mathbb{R}\to {\mathbb{R}}^2$, every output on the parabola is a critical value, and every output off it is a regular value with empty fiber of a function. There is no nonempty regular fiber of a function here, so the negative expression $1-2$ never becomes a claimed manifold dimension. Both diagrams show exact mathematical examples, not measured data.

A point $x\in X$ is a critical point of a smooth map if $d{f}_x:T_{x}X\to T_{f(x)}Y$ is not surjective. A critical value is the image of at least one critical point. A regular value is a point $y\in Y$ for which every point of $f^{-1}(y)$ has surjective differential. A point outside the image is therefore a regular value vacuously. These definitions use rank relative to $\dim Y$, not merely whether a derivative vanishes in chosen coordinates.