Fit a line to pairs, not independent lists
A prediction summarizes a relationship but does not force every observation to lie on the line.
Least squares chooses the line minimizing squared vertical residuals and passing through the centroid when an intercept is fitted.
Least squares chooses the line minimizing squared vertical residuals and passing through the centroid when an intercept is fitted.
Least squares chooses the line minimizing squared vertical residuals and passing through the centroid when an intercept is fitted.
When it applies
- Sxx>0 for a unique slope; correlation also needs Syy>0.
- Prediction beyond the observed range and causal interpretation need additional evidence.
Counterexample: The symmetric points of y=x² can have r=0 despite a deterministic nonlinear relation.
- Paired table, scatterplot, residual segments, centroid and squared-error calculation.