Ordinary least squares

Ordinary Least Squares (OLS) is a statistical method used to find the best-fitting line through a set of data points in a graph. Imagine plotting various points that represent relationships between two things, like hours studied and test scores. OLS calculates the line that minimizes the distance between the line and each data point, meaning it finds the line that best explains the relationship overall. This helps in making predictions and understanding trends, making it a valuable tool in fields like economics, social sciences, and engineering.