Statistical test; Why does OLS estimation involve taking vertical deviations of the points to the line rather than horizontal distances? – Elite Term Papers

1. (a) Why does OLS estimation involve taking vertical deviations of the points to the line rather than horizontal distances? (b) Why are the vertical distances squared before being added together? (c) Why are the squares of the vertical distances taken rather than the absolute values? 2. Explain, with the use of equations, the difference

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