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