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Ebooks / Linear Regression / Chapter 5 of 8

Ordinary Least Squares (OLS)

📊Statistical MethodsAugust 30, 2012 · 1 min read

Ordinary Least Squares (OLS) minimizes the residual sum of squares (RSS). RSS is the sum of each squared residual (residual = the observed Y minus the predicted “on the line” Y).

Also, about the OLS: the average residual is always zero, and the line passes through the point (average X, average Y).

This video by Bionic Turtle explains this method of ordinary least squares (OLS).