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Here, we figure outsome algebraic facts related to the least squares criterion. We’re thinking…

Here, we figure outsome algebraic facts related to the least squares criterion. We’re thinking…

Here, we figure outsome algebraic facts related to the least squares criterion. We're thinking about an observed point (x, y) in the scatter diagram. (a) Explain why the vertical distance of the point (x, y) from the estimated regression line is , provided the point is above the line. (b) Ifthe point (x, y) is below the line, is NOT the vertical distance. Why not? (c) How can you get rid of the possible negativity in the expression ? (d) What would be an algebraic expression for the “total” of the squared vertical distances away from the estimated regression line?