OLS
Units & Measurements abbreviation · Statistics
| Stands for | Ordinary least squares |
|---|---|
| Categories | Units & Measurements |
OLS stands for Ordinary least squares, a statistics abbreviation.
The standard way to fit a linear regression, choosing coefficients that minimize the sum of squared differences between observed and predicted values. It underlies most introductory regression analysis and econometrics.
Example: An OLS regression of wages on education estimates an 8 percent return per extra year of schooling.
Usage notes
Adrien-Marie Legendre published the method of least squares in 1805, and Carl Friedrich Gauss claimed to have used it since 1795. Under the Gauss-Markov assumptions OLS is the best linear unbiased estimator (BLUE). Heteroskedastic or correlated errors call for robust standard errors or generalized least squares.
Related abbreviations
More statistics abbreviations
- MGF – Moment-generating function
- MLE – Maximum likelihood estimation
- MOE – Margin of error
- MSE – Mean squared error
- n – Sample size
- NPV – Negative predictive value
- OR – Odds ratio
- p – p-value
- PCA – Principal component analysis
- PDF – Probability density function
- PI – Prediction interval
- PMF – Probability mass function