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Q. Illustrate what is the logic in the least squares method of linear regression analysis?
Linear regression refers to the special class of regression where the relationship between variables forms a straight line (Jacobs, p. 483). The equation for linear regression is Y= a +bX also it is used for long term forecasting of major occurrences also aggregate planning. Therefore the least squares method tries to fit the line to the data that will minimize the sum of the squares of the vertical distance between each point also where it corresponds on the line (Jacobs, p. 484). Overall the logic of least squares method is used to forecast the next quarterly sales of the organization
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