Question

Given a set of observations [(x,y)], [(1,6), (3,8), (4,6)], what is the slope that minimizes the SSE? Assume the intercept is zero. Answer precision is 2.

Answer 1

Answer:

Given a set of observations [(x,y)], [(1,6), (3,8), (4,6)]

Assume the intercept term is zero.

To find the slope that minimize the SSE:

Let the slope is which minimize the SSE.

We obtain by method of least square.

If is the model then

Now, Here

Therefore,

Hence, value of slope is 2.07 which minimize the SSE.