A regression analysis estimated using Ordinary Least Squares (OLS)does all of the following except which one?
A)minimize the sum of the squared differences between the actual and predicted quantities
B)estimates the relationship between a dependent variable and one or more independent variables
C)minimizes the sum of the squared residuals
D)estimates a regression equation that has zero residuals

Question

Quizplus · Accepted Answer

OLS regression does not estimate a regression equation that has zero residuals. Rather, it estimates an equation that minimizes the sum of the squared residuals.

A Regression Analysis Estimated Using Ordinary Least Squares (OLS)does All