Question

In the method of least squares, the deviation is the difference between the

predicted and estimated costs.

predicted and average costs.

average and actual costs.

predicted and actual costs.

Answer 1

The method of least squares is a standard approach in regression analysis to approximate the solution of overdetermined systems, i.e., sets of equations in which there are more equations than unknowns. "Least squares" means that the overall solution minimizes the sum of the squares of the residuals made in the results of every single equation.

In the method of least squares, the deviation is the difference between the:

Predicted and average costs.

Standard deviation is the square root of variance.