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Impact of an Outlier on OLS Coefficients
Based on the case study below, explain why the calculated regression line is a poor fit for the majority of the data. Your explanation should refer to the mathematical objective that the equation is designed to optimize.
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A data scientist is attempting to find the optimal coefficients () for a linear model using the equation , where is the matrix of input features and is the vector of target values. The calculation fails, returning a 'singular matrix' error. What is the most likely cause of this error in the dataset represented by matrix ?
Calculating OLS Coefficients
Impact of an Outlier on OLS Coefficients