(8) if the

sum of squared errors has not decreased, discard the new weights, increase [lambda] using 5, and go to step 4;

In other words, after establishing a linear equation, y = ax + b, where variables x and y have dependent relationship with each other and regression processing derives a and b that make the

sum of squared errors minimum among given data sets.

Instead of minimizing the

sum of squared errors (SSE) in LSR, it minimizes the sum of absolute errors (SAE).

The Ward Method of Minimum Variance is biased to form groups of the same size, from the

sum of squared errors (SSE) of each cluster (sum of squared deviations for each centroid of the cluster).

The weight is chosen to minimize the

sum of squared errors for the new estimate.

In the first run, all starting values equal one, and the fit-function returns a point in the parametric space (i.e., values of 10 parameters) and a corresponding

sum of squared errors. Let us denote this point as an acceptable point.

Mean and

Sum of Squared Errors of the Current Month's Recession Probability Estimates Mean Squared Error Aggregate Economic Labor (%) Sentiment (%) activity (%) (%) All months 1.8 3.8 2.0 3.0 First four months of 17.8 27.6 17.2 22.4 recessions Rest of recessions 0.2 11.1 1.9 5.4 Expansions 0.9 1.4 1.0 1.5

Sum of Squared Errors Aggregate Economic activity Labor Sentiment All months 6.5 13.9 7.4 11.1 First four months of 3.6 5.5 3.4 4.5 recessions Rest of recessions 0.1 4.0 0.7 2.0 Expansions 2.9 4.4 3.2 4.7

Performance index used in this paper is the

sum of squared errors,

The

sum of squared errors is minimized by equating the derivative of the squared errors to zero.

(4) Convergence is monitored by observing

sum of squared errors of the observed values and corresponding predicted values from step (2).

is the

sum of squared errors in the low group, and [Y.sub.ij] is the [j.sup.th] individual phenotype in the [i.sup.th] cell.