The term on the right is just the covariance of the errors. In the model, the error covariance is stated to be a diagonal matrix and so the above minimization problem will in fact yield a "best fit" to the model: It will yield a sample estimate of the error covariance which has its off-diagonal components minimized in the mean square sense. It can be seen that since the formula_107 are orthogonal projections of the data vectors, their length will be less than or equal to the length of the projected data vector, which is unity. The square of these lengths are just the diagonal elements of the reduced correlation matrix. These diagonal elements of the reduced correlation matrix are known as "communalities":