Metod najmanjih kvadrata
The method of last squares

Summary/Abstract: The paper presents: origin, application, significance and usefulness of Ordinary Least Squares Method, which is one of the most frequently used basic models in statistical analysis. In introduction, through one of the basic characteristic of arithmetic mean, the basis and idea of model construction are presented. Further on, through adapted general examples, it has been shown in which situations, in which way and why the Ordinary Least Squares Method is used in finding the best linear unbiased estimator of «normal value» for observed variable and on the basis of «empirical value» of selected sample. The aim of the paper is to allow better understanding of all possibilities and consequences of applying the Ordinary Least Squares Method and other models to their users.

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