Inuiln clearance, Business Management

    In the  figure  above the vertical deviations of the individual points  from the  line are shown  as the short vertical lines joining  the points  to the least  squares line. These deviations will be  denoted by the symbol the value of e varies from  one  point to another.  In some  cases it is  positive in others it is negative. If  the line  drawn happens to be the least squares line  then the  value of ∑e2 is the least possible. It  is because  of this  feature the methods is known  as least  squares methods.

Why  we insist  on minimizing  the sum  of squared  deviations is a  question that  needs explanation. It  we denote  the deviation from  the actual  value y to  estimated value (Y - Y )or e it is logical that we  want the  ∑ ( Y-Y) or ∑ e to be as small  as possible  however  mere examining ∑ ( Y-Y) or ∑ e  is inappropriate since  any e can be positive or negative and large positive  value  and large  negative  values  could cancel one another out. But  large values of e regardless of their  sign  indicate   a poor  prediction. Even  if we  ignore  the sings while working  out ∑e  the difficulties may continue to  be there . hence the standard procedure is to eliminate the effect of sings by squaring each observation. Squaring each  term  accomplishes two purposes viz.


Posted Date: 4/1/2013 6:35:09 AM | Location : United States

Related Discussions:- Inuiln clearance, Assignment Help, Ask Question on Inuiln clearance, Get Answer, Expert's Help, Inuiln clearance Discussions

Write discussion on Inuiln clearance
Your posts are moderated
Related Questions

a. It results in dislocation of production process and causes excessive delays or reduction in output. b. Wages are to be paid for idle time resulting in loss of profits.

what is Size of Customer, Type of Customer And Need for Service?

You have been appointed as part of a consultancy team that has been commissioned to assess the management issues concerned with the delivery of an online system for the submission

A) The future usefulness of any Performance Management initiative in an organization is underpinned by the determination of Key Performance Indicators (KPI). Provide a brief outlin

Adam's Big Leap Over the past five years or so, Adam has been working as Supervisor for King Burger and considers himself very fortunate to have landed in such a perfect job r

QUESTION (a) Interpersonal skills are vital for interacting with people individually and in groups and developing such skills contribute to communication effectiveness in the o

The activities of this last phase are: 1. Develop a migration strategy, 2. Create a migration action plan, 3. Develop metric for measuring performance during implement

Problem 1 : (a) ‘New Public Management' is a set of loosely defined international doctrines that have affected almost all public sector organizations over the past 20 years. W

What is the importance of training and education? Importance of Training and Education: Education and training bring workers to a standard; here they can perform industr