Why Does the Least Squares Regression Line Minimize Σ( Y

question 31

Short Answer

Why does the least squares regression line minimize Σ( Y - Y' ) ² , rather than Σ( Y - Y' )?

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Definitions:

Characteristics

Characteristics refer to distinguishing traits, qualities, or properties that identify and differentiate individuals, objects, or concepts.

Emerging Issues Task Force

A task force within the Financial Accounting Standards Board (FASB) that identifies and provides guidance on new financial reporting issues.

Consensus Positions

Agreed-upon statements or guidelines developed from the collective views of experts or stakeholders, often used in setting standards or policies.

Statements of Position

Financial reports that provide a snapshot of an entity's financial condition at a specific point in time, including assets, liabilities, and equity.