Ordinary Least Squares (OLS)

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).

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Linear Regression

8 lessons

Introduction to Linear Regression

Standard Error of Estimate (SEE)

Coefficient of Determination (R-Squared)

Sample Regression Function (SRF)

Ordinary Least Squares (OLS)

Standard Error in Linear Regression

ANOVA Table in Regression

Using LINEST() Function in Excel for Multivariate Regression

Topics

Statistical Methods