Topic 8 Multiple Regression

  • Multiple regression extends simple linear regression with more than one (1) predictor variables
  • We have one response variable and multiple independent predictor variable.

\[\begin{equation} y_{i}=\alpha+\beta_{1}x_{1}+\beta_{2}x_{2}+\ldots+\varepsilon_{i} \tag{8.1} \end{equation}\]

  • The estimation process is similar to the univariate case where the additional predictors are added with + operator
  • A multifactor example demonstrates in the next section