Inuiln clearance, Business Management

Assignment Help:

    In the  figure  above the vertical deviations of the individual points  from the  line are shown  as the short vertical lines joining  the points  to the least  squares line. These deviations will be  denoted by the symbol the value of e varies from  one  point to another.  In some  cases it is  positive in others it is negative. If  the line  drawn happens to be the least squares line  then the  value of ∑e2 is the least possible. It  is because  of this  feature the methods is known  as least  squares methods.

Why  we insist  on minimizing  the sum  of squared  deviations is a  question that  needs explanation. It  we denote  the deviation from  the actual  value y to  estimated value (Y - Y )or e it is logical that we  want the  ∑ ( Y-Y) or ∑ e to be as small  as possible  however  mere examining ∑ ( Y-Y) or ∑ e  is inappropriate since  any e can be positive or negative and large positive  value  and large  negative  values  could cancel one another out. But  large values of e regardless of their  sign  indicate   a poor  prediction. Even  if we  ignore  the sings while working  out ∑e  the difficulties may continue to  be there . hence the standard procedure is to eliminate the effect of sings by squaring each observation. Squaring each  term  accomplishes two purposes viz.

2286_inulin.png


Related Discussions:- Inuiln clearance

Investment portfolio strategy, From your past investment portfolio strategy...

From your past investment portfolio strategy and your explanation to your client, outline the basis of your future portfolio for the same principal and indicate the rationale for y

Compare e-business to e-commerce, QUESTION (a) What are the factors tha...

QUESTION (a) What are the factors that would cause a company to continue doing business in traditional ways and avoid electronic commerce? (b) Compare e-business to e-commer

Problem based on bags r us ltd, Bags R Us Ltd P&L Account for Bags R Us...

Bags R Us Ltd P&L Account for Bags R Us, year ended 31 st March 2008.   $ $ Sales ($35 * 3,000)   105,000

BSHS 382 Version 3 Research and Statistics for the S, What are the basic pr...

What are the basic principles for humane treatment of human subjects in research?

Internal culture of the organisation , Describe how you, the manager of the...

Describe how you, the manager of the business, would use two (2) different forms of visible organisationl culture to encourage staff to learn to be "innovative" and expect, and cop

Discuss the rationale for technical analysis, Question 1: (a) With the ...

Question 1: (a) With the use of a diagram describe what is meant by indirect investing. (b) What are mutual funds? (c) The total market value of all stocks of Dodo Investmen

How would you classify the ge culture, How would you classify the GE cultur...

How would you classify the GE culture in terms of the "Handy Model" discussed, please motivate your answer to explain why you have chosen a specific culture/s based on the informat

Leadership, Leadership: In the 21 Indisputable Legislation of Leadersh...

Leadership: In the 21 Indisputable Legislation of Leadership, John Maxwell sums up his interpretation of leadership as "leadership is sway - nothing extra, nothing fewer." Thi

Management, tell me the functions of lower management ?

tell me the functions of lower management ?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd