Question

The least squares method is applicable only in situations where the estimated regression line has a...

The least squares method is applicable only in situations where the estimated regression line has a positive slope.
True or False

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Answer #1

FALSE.

[ explanation:-

the least square method is used in regression.in this method, we try to find the best fit for a set of data points by minimize the sum of the residuals.residual means the difference between the observed value of the dependent variable(yi) and the expected value (y_hat) .the sign of the slope does not matters in least squares method.we can use this method when the slope is negative as well as when the slope is positive.]

the sign of slope only indicates direction.

the negative sign of the slope only indicates that the relationship between the dependent(y) and independent variable (x) is negative..means that as x increases y will decrease or vice versa.

whereas the positive sign indicates positive relationship between x and y]

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