How to Find an Estimate of the Least Squares

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    • 1). Write equations in the form y = mx + b for all your data points. Given the points (1, 1), (2, 4), (3, 2) and (4,3), you would write the following equations:

      1 = m + b

      4 = 2m + b

      2 = 3m + b

      3 = 4m + b

    • 2). Set up matrix A by using the coefficients from the right side of the equations. Given equations 1 = m + b, 4 = 2m + b, 2 = 3m + b and 3 = 4m + b, you would set up the matrix A as follows:

      [

      1, 1

      2, 1

      3, 1

      4, 1

      ]

    • 3). Establish vector V by using the variables m and b such that they are the least squares estimate, i.e., m*, b*.

      [

      m*

      b*

      ]

    • 4). Build vector B by using the corresponding y coordinates. Given the points (1, 1), (2, 4), (3, 2) and (4,3), vector B would look as follows:

      [

      1

      4

      2

      3

      ]

    • 5). Write the transpose of matrix A. Remember that the transpose of any matrix M is a matrix in which the rows of M are the columns of Mt, and the columns of M are the rows of Mt. Given the example, the transpose of matrix A is:

      [

      1, 2, 3, 4

      1, 1, 1, 1

      ]

    • 6). Calculate AtA by multiplying the transpose of matrix A by matrix A using the dot product method. Given the example, multiplying the 2x4 transpose by its 4x2 original would lead to the following 2x2 matrix:

      [

      1(1) + 2(2) + 3(3) + 4(4), 1(1) + 2(1) + 3(1) + 4(1)

      1(1) + 1(2) + 1(3) + 1(4), 1(1) + 1(1) + 1(1) + 1(1)

      ]

      This would then be simplified into the following:

      [

      30, 10

      10, 5

      ]

    • 7). Calculate AtB by multiplying the transpose of matrix A by vector B using the dot product method. Given the example, multiplying the 2x4 transpose by the 4x1 vector would lead to the following 2x1 matrix:

      [

      1(1) + 2(4) + 3(2) + 4(3)

      1(1) + 1(4) + 1(2) + 1(3)

      ]

      This would then be simplified into the following:

      [

      27

      9

      ]

    • 8). Write equations in the form y = mx + b by using the values of AtT, AtB and vector V. Given the example you would write the following equations:

      30m + 10b = 27

      10m + 5b = 9

    • 9). Solve for m by using elimination. Given the equations 30m + 10b = 27 and 10m + 5b = 9, for instance, you would multiply the second equation by -2 and then add it to the first equation:

      30m + 10b = 27

      -20m - 10b = -18

      ----------------------------

      10m = 9

      m = 9/10

    • 10

      Solve for b by using substitution. Given that m = 9/10, you can substitute 9/10 into the equation 30m + 10b = 27:

      30(9/10) + 10b = 27

      18 + 10b = 27

      10b = 9

      b = 9/10

    • 11

      Find the estimate of the least squares by plugging the values for m and b into the standard equation of a line. Given the example, the estimate of the least squares for the points (1, 1), (2, 4), (3, 2) and (4,3) is the line y = 9x/10 + 9/10.

Source...
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