6.9 Prediction: Linear model (Estimation)

  • Estimation = Fitting the model to the data (by adapting/finding the parameters)
    • e.g. easy in case of the mean (analytical) but more difficult e.g. for linear (or other) model(s)
  • Modellparameter: β0, β1 and β2
  • Ordinary Least Squares (OLS)
    • Least squares methods (Astronomy)
    • Choose β0, β1 and β2 so that the sum of the squared errors εi is minimized (See graph!)
    • Q: Why do we square the errors?