Mathematics · Statistics & Econometrics
In a simple linear regression model, Y = a + bX + e, the ordinary least squares (OLS) method minimizes the:
- 1Sum of the errors (Σe)
- 2Number of data points lying off the regression line
- 3Sum of the squared errors (Σe2)✓
- 4Sum of the absolute values of errors (Σ|e|)
Correct answer
Sum of the squared errors (Σe2)
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