**Ordinary Least Squares (OLS)**

- Context:

→ Fit a line of the form y = mx + c or y = b0 + b1x

→ Concept of actual y (𝐲i) and estimated y (ỷi)

→ Minimize the squared deviation between actual and estimate.

**The Derivation :-**

**Derivation :-**

- Our goal is to minimize SSE:

- We use basic ideas from calculus: Take the first derivative and equate it to 0.

**Derivation for b0**

**Derivation of b1**

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