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    5) Multiple Regression

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    Sumit Mudi
    Multiple linear regression allows analysis of the relationship between two or more independent variables and one dependent variable. It estimates how the dependent variable changes as the independent variables change. The model calculates regression coefficients to find the best-fit line for each independent variable that leads to the smallest error. It then calculates t-statistics and p-values to determine the strength and significance of the relationships between the variables.

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    5) Multiple Regression

    Uploaded by

    Sumit Mudi
    69 views8 pages
    Multiple linear regression allows analysis of the relationship between two or more independent variables and one dependent variable. It estimates how the dependent variable changes as the independent variables change. The model calculates regression coefficients to find the best-fit line for each independent variable that leads to the smallest error. It then calculates t-statistics and p-values to determine the strength and significance of the relationships between the variables.

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    Multiple linear regression allows analysis of the relationship between two or more independent variables and one dependent variable. It estimates how the dependent variable changes as the independent variables change. The model calculates regression coefficients to find the best-fit line for each independent variable that leads to the smallest error. It then calculates t-statistics and p-values to determine the strength and significance of the relationships between the variables.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    69 views8 pages

    5) Multiple Regression

    Uploaded by

    Sumit Mudi
    Multiple linear regression allows analysis of the relationship between two or more independent variables and one dependent variable. It estimates how the dependent variable changes as the independent variables change. The model calculates regression coefficients to find the best-fit line for each independent variable that leads to the smallest error. It then calculates t-statistics and p-values to determine the strength and significance of the relationships between the variables.

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    MULTIPLE REGRESSION ANALYSIS

    By
    Patitapaban Sahu
    Multiple Linear Regression

    Regression models are used to describe relationships between variables by fitting a line to the
    observed data. Regression allows you to estimate how a dependent variable changes as the
    independent variable(s) change.

    Multiple linear regression is used to estimate the relationship between two or more
    independent variables and one dependent variable. You can use multiple linear regression
    when you want to know:

    How strong the relationship is between two or more independent variables and one dependent
    variable (e.g. how rainfall, temperature, and amount of fertilizer added affect crop growth).
    The value of the dependent variable at a certain value of the independent variables (e.g. the
    expected yield of a crop at certain levels of rainfall, temperature, and fertilizer addition).
    Example
    You are a public health researcher interested in social factors that influence heart
    disease. You survey 500 towns and gather data on the percentage of people in
    each town who smoke, the percentage of people in each town who bike to work,
    and the percentage of people in each town who have heart disease.

    Because you have two independent variables and one dependent variable, and all
    your variables are quantitative, you can use multiple linear regression to analyze
    the relationship between them.
    Assumptions of multiple linear regression
    Multiple linear regression makes all of the same assumptions as simple linear regression:

    Homogeneity of variance (homoscedasticity): the size of the error in our prediction doesn’t
    change significantly across the values of the independent variable.

    Independence of observations: the observations in the dataset were collected using


    statistically valid methods, and there are no hidden relationships among variables.

    In multiple linear regression, it is possible that some of the independent variables are actually
    correlated with one another, so it is important to check these before developing the regression
    model. If two independent variables are too highly correlated (r2 > ~0.6), then only one of
    them should be used in the regression model.

    Normality: The data follows a normal distribution.

    Linearity: the line of best fit through the data points is a straight line, rather than a curve or some sort of
    grouping factor.
    To find the best-fit line for each independent variable, multiple linear regression
    calculates three things:

    The regression coefficients that lead to the smallest overall model error.
    The t-statistic of the overall model.

    The associated p-value (how likely it is that the t-statistic would have occurred
    by chance if the null hypothesis of no relationship between the independent and
    dependent variables was true).

    It then calculates the t-statistic and p-value for each regression coefficient in the
    model.

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