Method of least squares

• calculation of least squares estimators
  b <- (sum(x*y) - n*(mean(y)*mean(x))) / (sum(x*x) - n*(mean(x)*mean(x)))
a <- mean(y) - b*mean(x)
• calculation of predicted value of Y for any value of X
  a + b * x
• calculation of residuals (errors)
  residuals <- y - Y

Back to Table of Contents