The OLS estimators for $\beta$₁and$\beta$₂are formulas derived by minimizing _____________. A)the sum of the error terms or residuals B)the sum of the squared residuals C)the slope of the regression line D)the fit of the regression line to the observed data.

Question

Quizplus · Accepted Answer

The OLS estimators are derived by minimizing the sum of the squared residuals, which is also known as the residual sum of squares (RSS). This is because the RSS measures the distance between the observed data points and the predicted values from the regression line, and the goal is to minimize this distance to obtain the best fit line.

The OLS Estimators For β\betaβ 1 and β\betaβ 2 are Formulas Derived by Minimizing _____________

The OLS Estimators For $\beta$ ₁and $\beta$ ₂are Formulas Derived by Minimizing _____________