Least Squares
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Sometimes, we receive erroneous or distorted data. This makes it impossible to find a function that goes through every single point. Consequently, we have to roughly estimate what the values should be by estimating a function that minimizes the squared distance between our function and the actual data.
In this figure, there is no line that goes through all the data points. Consequently, we use least squares to create the best "estimate" for these points.
