Question

The least squares method is applicable only in situations where the estimated regression line has a positive slope.

True or False

Answer 1

FALSE.

[ explanation:-

the least square method is used in regression.in this method, we try to find the best fit for a set of data points by minimize the sum of the residuals.residual means the difference between the observed value of the dependent variable(y_i) and the expected value (y_hat) .the sign of the slope does not matters in least squares method.we can use this method when the slope is negative as well as when the slope is positive.]

the sign of slope only indicates direction.

the negative sign of the slope only indicates that the relationship between the dependent(y) and independent variable (x) is negative..means that as x increases y will decrease or vice versa.

whereas the positive sign indicates positive relationship between x and y]

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