Consider the Four Points (20,20),(30,50),(40,30),and (50,60) $\hat{y} = 5 + 50 x$

Multiple Choice

Consider the four points (20,20) ,(30,50) ,(40,30) ,and (50,60) .The least squares line is $\hat{y} = 5 + 50 x$ Explain what "least squares" means using these data as a specific example.

A) The line $\hat{y}$ = 5 + 50x minimizes the sum of the vertical distances from the points to the line.
B) The line $\hat{y}$ = 5 + 50x minimizes the sum of the squared vertical distances from the points to the line.
C) The line $\hat{y}$ = 5 + 50x minimizes the sum of the squared horizontal distances from the points to the line.
D) The line $\hat{y}$ = 5 + 50x minimizes the square of the standard deviation.
E) The line $\hat{y}$ = 5 + 50x minimizes the sum of the squared difference between the x and y values.