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MULTIPLE LINEAR REGRESSION

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Regression analysis is a statistical technique that is used to examine the functional relationship between a single dependent variable and one or more independent variables. The term simple linear regression describes a problem that involves a single dependent variable and a single independent variable.  Multiple linear regression is an application that relates two or more independent variables to a single dependent variable.

The general form of the simple linear regression model is stated below in (1) while equation (2) shows the general form of the multiple regression models:

Y = b_o + b₁x₁ + e                                (1)

Y = b_o + b₁x₁ + b₂x₂ + ... + b_kx_k + e      (2)

Where Y is the dependent variable; b₁ , ... , b_k are the k parameter estimates generated the application of the regression analysis; and, e is a random error term.

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