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Chapter 3: Q.44 (page 191)

Least-squares ideaTrace the graph from Exercise 40on your paper. Show why the line drawn on the plot is called the least-squares line.

Short Answer

Expert verified

The least-squares regression line minimizes the squared prediction errors and no other line would show a lesser sum of squared residuals, which is why it is called the least-squares line.

Step by step solution

01

Given Information

We need to explain why the line drawn on the plot is called the least-squares line.

02

Explanation

Figure shows a scatter plot of the data with the regression line added as the least-squares regression line of yon x.

With the regression line added, the scatter plot is shown in the figure.

As you can see from the figure, the least-squares regression line does not deviate greatly from scattered points.

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