advertisement

Method of Least Squares Using optimization techniques from earlier in section 8.3, we can develop and explain the mathematical foundation of the method of least squares: Question: What do we mean by "best" approximation? Suppose we have the following data: Quantity cost x (in hundreds) y (in thousands) 2 4 5 6 6 7 9 8 Goal: Find a and b such that the sum of the squares of the residuals is minimized.