Gradient of cost function

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I have tried to calculate the gradient of the LMS cost function as follows but have a problem.

$$J(\theta) = \frac12(y - X'\theta)^2$$ where $y$ is a scalar, theta and $X$ is a $n$ dimensional vector and $X'$ denotes tranpose of $X$.

gradient wrt $\theta$ according to me should be $(y - X'\theta)\theta$.

Is this correct? I have a doubt because opening the bracket results in an exression which involves multiplication of $X'\theta \,\theta$ which is not possible. Where have I made the mistake ?

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The gradient of $J(\theta)=\frac12 (y-X'\theta)^2$ is given by

$$\text{grad }J(\theta)=(y-X'\theta)X$$

It's of course a vector because $\theta$ is a vector too. If you don't see how it works, just compute the element-wise derivatives first.