In the least-squares method, the fitted regression line is selected by minimizing the:

Correct answer: B. Sum of squared residuals

  • A. Sum of absolute X values
  • B. Sum of squared residuals
  • C. Sum of observed Y values
  • D. Product of the two means

Explanation

Least squares chooses the line for which the sum of the squared vertical residuals is as small as possible. Squaring prevents positive and negative errors from cancelling each other.

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About Correlation and Regression

Correlation describes the direction and strength of association between two variables using scatter diagrams and correlation coefficients. Regression covers fitted lines, regression equations, prediction and least squares, with a clear distinction between association and causation and between estimating a response value and reversing the roles of the variables.

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