MATLAB: OLS estimator b=x\y

ols estimation

Hi guys,
when x is n*2 vector and y is n*1 vector,
b=(x'*x)^(-1)*x'*y.
If I use the expression like
b=x\y,
both have same results.
What is difference between these two expressions?

Best Answer

‘What is difference between these two expressions?’
The way they are implemented in MATLAB. The documentation for mldivide,\ explains how it works (so I won’t go into that here), and the reason it is more stable and preferred over taking the inverse and multiplying.
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