Multiple Regression Analysis

• For two independent variables, the general form of the multiple regression equation is
• Y'=a+b1X1+b2X2
• X1 and X2 are the independent variables.
• a is the Y intercept
• b1 is the net change in Y for each unit change in X1
• holding X2 constant. It's called a partial regression coefficient a net regression coefficient or just a regression coefficient.
• The general multiple regression with k independent variable is givien by:
• The least squares criterion is used to develop this eauation.
• Calculating, b1, b2, etc is very tedious there are many computer software packages that can be used to estimate these parameters