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Give two properties of the line estimated with the method of least squares.

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Properties least-squares regression line:

  • Line minimizes the sum of the squared errors of predictions (thus minimized the squared differences between the observed and predicted yy-values).

  • Line passes through the point (x,y)(\overline{x},\overline{y}), where x\overline{x} represents the mean of all given xx-values and y\overline{y} represents the mean of all given yy-values.

  • The constant of the equation of the regression line is the yy-intercept of the regression line.

  • The coefficient of xx of the equation of the regression line is the slope of the regression line.

  • The sum of all errors of predictions is zero for the least-squares regression line.

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