**Cubic Splines**

**Definition of Cubic Splines:**
A cubic spline is a particular nonparametric estimator of a function. Given a data set
{X_{i}, Y_{i}} it estimates values of Y for X's other than
those in the sample. The process is to construct a function that balances the
twin needs of (1) proximity to the actual sample points, (2) smoothness. So a
'roughness penalty' is defined.
(Econterms)

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