Cho 1 Statistic Literature Review – OLS Regression

1. A brief summary of the statistical method (1) What is the method? Regression is a statistical technique used for modeling and analysis of numerical data by finding the best-fitting straight line. In other words, a regression line is defined the combination between the average values of a numerical outcome variable and deterministic variables. The ways to find a best fitting straight line, estimating a regression coefficient in linear regression, are varying. The OLS is a widely used way to determine the best fitting straight line. OLS is a technique to minimize the sum of squared residuals, which is a deviation between actual response values and those predicted by the model (Kabacoff, 2015).