Geometrically, if di is the vertical distance from the data point (xi, yi) to the point (xi, a+bxi) on the line, then di = yiabxi (see Figure 26.4). We must minimize the sum of the squares of the vertical distances di, that is, the sum images

 

Figure 15.4

 

Figure 15.4

 

To minimize e (a,b), we equate to zero the partial derivatives of (63) with respect to ‘a’ and ‘b’. Thus

 

images

 

which are known as normal equations. We write these equations in the form ...

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