A regression analysis estimated using Ordinary Least Squares (OLS)does all of the following except which one?
A)estimates the relationship between a dependent variable and one or more independent variables
B)minimizes the sum of the squared residuals
C)fits a perfect straight line that connects each of the scatter points
D)includes a random error term

Question

Quizplus · Accepted Answer

OLS does not fit a perfect straight line that connects each of the scatter points. Rather, it estimates the best-fitting line using the method of minimizing the sum of squared residuals.

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