October 2024
Beginner
228 pages
6h 47m
English
Content preview from Regression Basics, 3rd Edition
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3The Least Squares Estimation Method
In the four examples presented in Chapter 2, we had a scatter plot of points, each point representing an observation for a dependent variable (Y) and an independent variable (X). We added a line to the scatter plot that, in some sense, best fit the data and that demonstrated the general relationship between the two variables. But how do we identify such a line that best fits the data? We could consider simply using a ruler and drawing a line that seems to fit the data best. This method, however, is not advisable because it is not a precise approach, and in some cases, the scatter of points does not suggest to the naked eye an obvious location for the line. A more systematic, ...
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