What is the 'Least Squares Method'
A statistical technique to determine the line of best fit for a model. The least squares method is specified by an equation with certain parameters on observed data. This method is extensively used in regression analysis and estimation.
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BREAKING DOWN 'Least Squares Method'
In the most common application  linear or ordinary least squares  a straight line is sought to be fitted through a number of points to minimize the sum of the squares of the distances (hence the name "least squares") from the points to this line of best fit.
In contrast to a linear problem, a nonlinear least squares problem has no closed solution and is generally solved by iteration. The earliest description of the least squares method was by Carl Freidrich Gauss in 1795.
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