FORMULAS

With these elements, the sum of squares equals 22 + 42 + 62 = 56. In matrix notation, d and d’ are. The sum of squares equals. This shows multiplying the transpose of a vector by the vector will give the sum of squares of the vector. With the sum of squared residuals defined and using the definition for calculating the error term, the objective function of OLS can be written as follows: (11) . ................
................