Ordinary Least Squares (OLS)

Ordinary Least Squares (OLS) is a method used in statistics to find the best-fitting line through a set of data points. Imagine you have a scatter plot of points representing two variables, like height and weight. OLS calculates the line that minimizes the total distance between each point and the line itself, effectively "least squares." This helps to predict one variable based on the other, allowing us to understand relationships in data. OLS is widely used in many fields, including economics, social sciences, and medicine, for tasks like forecasting and analyzing trends.