Abstract

SKALA, Vaclav  and  KANSA, Edward. Why is the Least Square Error Method Dangerous?. Comp. y Sist. [online]. 2021, vol.25, n.1, pp.149-151.  Epub Sep 13, 2021. ISSN 2007-9737.  https://doi.org/10.13053/cys-25-1-3473.

This contribution briefly describes some ”dangerous” features of the Least Square Error (LSE) methods, which are not generally known, but often used in applications, and researchers are not aware of those. The LSE is usually used in approximations of acquired data to find ”the best fit” of the data, especially in financial economics and related fields. However, the LSE method is not invariant to some standard basic operations used within a solution of a linear system of equations.

Keywords : Least square error; system of linear equations; numerical mathematics; over determined system; invariant operations.

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