Which statement best describes the least squares (regression) method?
A) It is easily done by hand.
B) It statistically finds a "best fitting" line.
C) It uses the highest and lowest data point.
D) It is a graphical way of separating a mixed cost.

Question

Quizplus · Accepted Answer

The least squares (regression) method is a statistical approach that finds the line of best fit through a set of data points. It minimizes the sum of the squares of the vertical distances between each data point and the line, resulting in a line that best represents the overall trend in the data. This method is commonly used in fields such as economics, engineering, and science to analyze and model relationships between variables. Option A is incorrect because the method often requires complex calculations and is typically done with software. Option C is incorrect because the method does not rely on just the highest and lowest data points. Option D is incorrect because it is not a method for separating mixed costs.

Which Statement Best Describes the Least Squares (Regression) Method