Introduction to multiple regression, Applied Statistics

In simple regression the dependent variable Y was assumed to be linearly related to a single variable X. In real life, however, we often find that a dependent variable may depend on more than one independent variable. A simple example is the idea of profit. The profit of a company would depend upon a number of revenues and costs. Hence, the simple regression equation appears to be inadequate in representing such a situation.

In general the multiple regression equation is

1482_standard error2.png A + B1X1 + B2X2 + B3X3 + ----- + BnXk

where there are k independent variables X1, X2,---- Xk.

We can also write the equation as  1482_standard error2.png  = A + B1x1 + B2x2 + .... + Bnxk + Ε

Posted Date: 9/15/2012 5:27:54 AM | Location : United States







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