OLS - Minimizing Vertical Distances - Regression Line
Setting the Derivative of the SSR Function to Zero to Calculate the Optimized Values of Slope and Y-Intercept
Modify the First Applet
Considering the formula for the SSR, how would you modify the components o and a of the first applet?
Reference: https://www.geogebra.org/m/farrqtbk
How to Use The First GeoGebra Build for the OLS Method?
1.) Considering the set of data points in blue and the red line, which serves as an estimator of the best fit or regression line, try to guess the optimized slope and optimized y-intercept using the sliders.
(Hint: The regression line is the magenta line.)
2.) As you manually derive the best fit or regression line, observe and compare the non-optimized sum of squares (component a) with the least sum of squares (component o). Reflect on how the formula for the regression line is derived.
3.) Study the Algebra pane section and try to find the command for finding or graphing the regression line given a set of data points.
4.) Study the spreadsheet and try to replicate this build in order to experience the concepts of the regression line firsthand.