The problem of Graduation or Adjustment, with which the present paper is concerned, may be defined as follows. Let a number u be a function of a number x: and suppose that, corresponding to the values … −3, − 2, −1, 0, 1, 2, 3 … of x, we have obtained, as a result of observation, values … u−3, u−2, u−1, u0, u1, u2, u3 … for u. Owing to errors of observation, these observed values when plotted against the corresponding values of x do not lie on a smooth curve, although for theoretical reasons we believe that they would do so if freed from errors. The problem is to determine the most probable set of “graduated” or “adjusted” values
which differ only slightly from the above observed values, and which lie on a smooth curve.