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Title: Multiple Linear Regression
Description: These notes detail the steps necessary to complete a common statistics function -- a multiple linear regression. These are college level notes but they can also be used for high school classes and AP courses.
Description: These notes detail the steps necessary to complete a common statistics function -- a multiple linear regression. These are college level notes but they can also be used for high school classes and AP courses.
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Multiple Linear Regression
Sunday, March 6, 2016
12:25 PM
Multiple Regression Models
• Probabilistic models that include more than one independent variable are called multiple
○ Y = B0 + B1x1 + B2x2 +
...
X1 = advertising expenditure
§ X2 = number of sales competitors
§ X3 = (x1)^2
§ X4 = 1 if TV advertising, 0 if not
○ X3 term is a higher order term because it is a quantitative variable squared
○ X4 term is a coded variable representing a qualitative variable
Assumptions for Random Error ⍷
Mean equal to 0
Variance equal to sigma^2
Normal distribution
Random errors are independent (in a probabilistic sense)
Estimating and Making Inferences about the B Parameters
• A model that includes terms only for quantitative independent variables is called a first-o
○ X1, x2,
Title: Multiple Linear Regression
Description: These notes detail the steps necessary to complete a common statistics function -- a multiple linear regression. These are college level notes but they can also be used for high school classes and AP courses.
Description: These notes detail the steps necessary to complete a common statistics function -- a multiple linear regression. These are college level notes but they can also be used for high school classes and AP courses.