Suppose You Fit a Least Squares Line to 25 Data $s ^ { 2 }$

question 49

Essay

Suppose you fit a least squares line to 25 data points and the calculated value of SSE is 0.42. a. Find $s ^ { 2 }$ , the estimator of $\sigma ^ { 2 }$ .
b. What is the largest deviation you might expect between any one of the 25 points and the least squares line?

---

Definitions:

Expected Value

A statistical concept that calculates the average outcome when the future includes scenarios that may or may not happen, often used in decision-making and risk assessment.

Outcome

The result or consequence of an action, process, or situation, typically measured against expected or intended objectives.

Expected Monetary Value

A statistical concept used to calculate the average outcome when the future includes scenarios that may or may not happen.

Uncertainty

Uncertainty refers to the lack of certainty, predictability, or definiteness about an outcome or condition, often requiring risk assessment and management strategies.