Are you looking for a computationally cheap, easy-to-explain linear estimator that’s based on simple mathematics? Look no further than OLS!
OLS stands for ordinary least squares. OLS is heavily used in econometrics—a branch of economics where statistical methods are used to find the insights in economic data.
As we know, the simplest linear regression algorithm assumes that the relationship between an independent variable (x) and dependent variable (y) is of the following form: y = mx + c, which is the equation of a line.
Continue reading Implementing ordinary least squares (OLS) using Statsmodels in Python