Computational Approach - Least Squares

In the scatterplot, we have an independent or X variable and a dependent or Y variable. These variables may, for example, represent IQ (intelligence as measured by a test) and school achievement [grade point average (GPA)], respectively. Each point in the plot represents one student, that is, the respective student's IQ and GPA. The goal of linear regression procedures is to fit a line through the points. Specifically, STATISTICA computes a line so that the squared deviations of the observed points from that line are minimized. Thus, this general procedure is sometimes also referred to as least squares estimation. See also the description of weighted least squares.