Discuss how the least squares line is used to predict $y$ on the basis of $x.$

Solution

VerifiedLeast square line is one of the regression analysis techniques which is used to predict the value of the dependent variable when the independent variable is known or if we assume a certain value of the independent variable. This is done when we want to predict the effect of an independent variable on the dependent variable. In the least square line, there is an assumption of connection between the dependent and independent variables by relating the dependent variable to a single independent variable.

The linear connection is defined as $\hat{y}=b_0+b_1x$ where $b_0$ is the $y-$intercept, $b_1$ is the slope calculated by dividing the covariance by the square of the sample standard deviation of the sample of $x$ values, and $\hat{y}$ is the predicted value when we assume a value for $x$.

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