PRC-2 · Chapter 10 · Question 36 of 60
Which specific criterion does the 'Method of Least Squares' utilize to determine the optimal line of best fit?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) It minimizes the sum of the squared vertical deviations (residuals) between the actual data points and the regression line.
Explanation
The least squares regression line is mathematically derived by minimizing the total sum of the squares of the vertical errors (the difference between the observed Y values and the predicted Y values).
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