Posted by **mathstudent 05** on Thursday, May 24, 2007 at 3:27pm.

can someone give me an example of what they mean about this problem. I have to come up with a real-world example where we can apply the concept learned within our chapter that the data could be linear which it talks about solving equations using the method of least squares within linear functions.

then explain it but i have no idea how to set it up. I think it would be something of companies data.But i have no clue how to write it down or even if i am right

I think I understand your question.

Ordinary Least Squares (OLS) is a statistical method which is used to ESTIMATE linear (and sometimes non-linear) functions or relationships. On a graph, a linear function is simply a line. Remember, from algebra, the form of a line; y=mx+b, where m is the slope and b is the y-intercept. The topic could be anything; companies, sports, science, technology, etc.

As an example, say you wanted to know how fast a pine tree grows. Every year for 30 years you measure the height. Now plot your data; y is the height of the tree, x is the number of years. Now then you could look at the graph and guess the average slope. Or you could use OLS and estimate the equation. With OLS, you would get a line that "best" represents the relationship between time and height.

I hope this helps.

thank you econmyst in the end i figured out what to do. I was thinking to far and making it more difficult. Thank you for taking your time and helping me out.

## Answer This Question

## Related Questions

- psychology paper - Hello I have to write a paper and part of the paper is asking...
- Algebra - How can you model data with a linear function? You must provide a real...
- math - I have a question on a quiz, and I cant seem to figure it out I have to ...
- Psychology - Hello I to write a paper and part of the paper is asking for ...
- english - Hey, Can please somebody read and correct this text? I thning that ...
- English - 1. To come up with possible solutions to a problem is referred to as: ...
- physics - Your friend is confused about ideas discussed in chapter 4 that seem ...
- hca 270 - i have to do this and i have no idea im so confused i know to define ...
- algebra - Explain in your own words what it means for an equation to model a ...
- college-history - 1. Should American foreign policy be based on our values and ...

More Related Questions