What is characteristic for the least squares (regression) method?
A) It uses statistics to construct a cost formula.
B) It can easily be calculated without a calculator.
C) It is less accurate than the scattergraph method.
D) It analyzes a cost relationship by graphing the data points.

Question

Quizplus · Accepted Answer

The least squares method uses statistical analysis to find the line of best fit for a set of data points. It minimizes the sum of the squared differences between the observed data and the predicted values from the regression equation. This results in a cost formula that can be used to predict future costs or estimate the impact of changes in input variables.

What Is Characteristic for the Least Squares (Regression) Method