Ordinary Least Squares Regression analysis attempts to
A)maximize the distance of each point from a regression line.
B)select a line that fits the data well.
C)maximize the residual.
D)change a multivariate problem into a single dimension.

Question

Quizplus · Accepted Answer

Ordinary Least Squares Regression analysis selects a line that fits the data well by minimizing the sum of the squared differences between the observed values and the predicted values. This is often described as finding the line of best fit. Options A, C, and D are not accurate statements about OLS regression analysis.

Ordinary Least Squares Regression Analysis Attempts to