This document discusses the normal equations method and QR decomposition method for solving linear regression problems. It notes that while the normal equations method is simpler, the QR decomposition method is numerically more stable. Specifically, it notes that the normal equations method is only backward stable if the data matrix X is well-conditioned, whereas the QR method is always backward stable. It concludes that the normal equations method is useful for teaching but to be aware of its disadvantages compared to the QR method.