Page 155 - Applied Statistics with R
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                         •      1  as the weight (wt) of the   th car.
                         •      2  as the model year (year) of the   th car.

                      The picture below will visualize what we would like to accomplish. The data
                      points (   ,    ,    ) now exist in 3-dimensional space, so instead of fitting a line
                                1
                                       
                                    2
                      to the data, we will fit a plane. (We’ll soon move to higher dimensions, so this
                      will be the last example that is easy to visualize and think about this way.)





                                                                                       40





                                                                                       30

                              40


                                 30
                                                                                       20

                                    20                                   82
                                                                        80
                                 mpg
                                      10                               78
                                        0                             76 year          10
                                          2000
                                                                     74
                                                3000
                                                                   72
                                                    wt 4000
                                                              5000 70                  0







                      How do we find such a plane? Well, we would like a plane that is as close as
                      possible to the data points. That is, we would like it to minimize the errors it
                      is making. How will we define these errors? Squared distance of course! So, we
                      would like to minimize

                                                     
                                       (   ,    ,    ) = ∑(   − (   +       +       )) 2
                                                                       2   2
                                        0
                                             2
                                           1
                                                                1   1
                                                           0
                                                        
                                                    =1
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