The method of \"ordinary least squares, \" also known as \"the least squares met
ID: 3250371 • Letter: T
Question
The method of "ordinary least squares, " also known as "the least squares method, " does which of the following? Read carefully. It minimizes the sum of the squared differences between the actual values of Y, y_i and the estimated values of Y, y_i = b_0 + b_1 x_i, and is given by the following formula SSE = sigma^n/i = 1 (V_i - b_0 - b_1 x_i)^2 It minimizes the sum of the absolute value of the differences between the actual values of Y, y_i and the estimated values of Y, y_i = b_0 + b_1 x_i, and is given by the following formula SSE = sigma^n_i = 1 |y_i - b_0 - b_1 x_i| It minimizes the sum of the squared differences between the actual values of Y, y_i and the actual values of X, x_i and is given by the following formula SSE = sigma^n_i = 1 (y_i - x_i)^2 It maximizes the sum of the squared differences between the actual values of Y, y_i and the estimated values of Y, y_i = b_0 + b_2 x_i, and is given by the following formula SSE = sigma^n_i = 1 (V_i - b_0 - b_1 x_i)^2 It minimizes the sum of the squared differences between the actual values of X, x_i and the estimated values of X, x_i = b_0 + b_1 y_i, and is given by the following formula SSE = sigma^n_i = 1 (X_i - b_0 - b_1 y_i) It minimizes the sum of the differences between the actual values of Y, y_i and the estimated values of Y, y_i = b_0 + b_1 x_i, and is given by the following formula SSE = sigma^n_i = 1 (y_i - b_0 - b_1 x_i) A scatterplot of two numeric variables X and Y is shown below.Explanation / Answer
The correct answer is A.
SSE minimises the sum of squared errors
Sum of squared errors is calculated by find the error between actual value and predicted value, squaring the error and the summing it.
Hence, SSE = Sum[( Yi - bo -b1 xi)^2]