least squares estimation

Least squares estimation is a statistical method used to find the best-fitting line or curve through a set of data points. It works by minimizing the sum of the squares of the differences between the observed values (actual data points) and the values predicted by the model (the fitted line). Essentially, it helps in making predictions and understanding relationships by finding the 'line of best fit' that represents the data most accurately. This technique is widely used in various fields such as economics, engineering, and social sciences to analyze trends and make informed decisions.