• Card 135 / 180: The method of least squares used to estimate a regression line is best described by which of the following?
    A) Solve for the minimum possible sum of the squared errors (SSE) from a sample of data scattered around a straight line.
    B) Solve for the maximum possible sum of the squared errors (SSE) from a sample of data scattered around a straight line.
    C) Solve for the minimum possible residuals from a sample of data scattered around a straight line.
    D) Solve for the minimum possible correlation coefficient from a sample of data scattered around a straight line.

    Answer:
    A) Solve for the minimum possible sum of the squared errors (SSE) from a sample of data scattered around a straight line.

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Business Statistics

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Attribution:  David T. Bourgeois, PhD; Bharatendra K. Rai, PhD. Business Statistics. The Saylor Academy 2014, http://www.saylor.org/courses/bus204/
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