The ordinary least squares (OLS) principle is a statistical method used in regression analysis to estimate the relationship between a dependent variable and one or more independent variables. The principle states that the best-fitting line through a set of data points is the one that minimizes the sum of the squared differences between the observed values and the values predicted by the line. In other words, OLS seeks to find the line that best explains the variation in the data by minimizing the sum of the squared residuals.