We determine the estimated sample regression function by
A)minimizing the total deviations from the mean.
B)maximizing the sum of squared residuals.
C)minimizing the sum of squared residuals.
D)minimizing the least absolute deviations from the mean.

Question

Quizplus · Accepted Answer

The estimated sample regression function is determined by minimizing the sum of squared residuals, which measures the distance between the observed values and the predicted values. This method is called least squares regression and is the most widely used method for estimating the parameters of a linear regression model. Therefore, the correct choice is C.

We Determine the Estimated Sample Regression Function by