Bullets Statistics for Business and Economics

12. Multiple Regression

  • Regression objectives are either to predict the value of the dependent variable, or to estimate the marginal effect of each independent variable.
  • A population multiple regression model is a model that includes multiple independent variables.
  • Standard multiple regression assumptions include the four standard simple regression assumptions, plus a fifth one: It is not possible to find a set off nonzero numbers such that the sum of the coefficients equals zero.
  • Multiple regression models include an error term, ε, that represents variability caused by variables not included in the model.
  • In multiple regression coefficients are estimated using least squares, but these estimates become less reliable the higher the correlations between independent variables are.
  • Any regression coefficient in a multiple regression model is dependent on all independent variables, and are thus referred to as conditional coefficients.
  • Mean square regression (MSR) shows the proportion of the variability by the dependent variable that can be explained by the regression model.
  • In a multiple regression model the sum-of-squares (SST; or sample variability) can be split into the sum of squares regression (SSR; or explained variability) and the sum of squares error (SSE; or unexplained variability). This is referred to as sum-of-squares decomposition.
  • The coefficient of determination, R2, describes the strength of the linear relationship between the independent variables and the dependent variables, and is calculated by 1 – SSE/SST.
  • Adding more independent variables leads to a misleading increase in R2, which can be avoided by calculating the adjusted coefficient of determination.
  • The coefficient variance estimator, s2b, is calculated as:
    The square root of s2b is the coefficient standard error.
  • Multiple regression models can be transformed into non-linear models, namely quadratic models and logarithmic models.
  • Dummy variables can be used to represent categorical data in a regression model, and have a value of either 0 or 1.


13. Additional Topics in Regression Analysis

  • Models are developed through four steps: model specification (selecting the variables, the algebraic form, and the data), coefficient estimation, model verification (checking whether the model is still accurate), and interpretation and inference.
  • Dummy variables can be used to represent more than two categories by using multiple dummy variables. The rule is: number of categories -1 = number of dummy variables.
  • In time series data the values of the dependent variable are related, this is then referred to
  • ... Interested? Read the instructions below in order to read the full content of this page.

Access options

The full content is only visible for JoHo WorldSupporter members.

  • For information about international JoHo WorldSupporter memberships, read more here.
  • Are you already a member?
    • During the account creation you can select 'I am a JoHo WorldSupporter Member'.
    • Became a member after you've created the account, then you can change the settings of your account on your WorldSupporter user page
  • or fill out the contact form


For Dutch visitors

Toegang tot pagina of document:

Word JoHo donateur voor online toegang

Je bent al donateur, maar je hebt geen toegang?

  • Log in, of maak een account aan als je dat nog niet eerder hebt gedaan op worldsupporter.org.
  • Bij het aanmaken van je account kan je direct aangeven dat je JoHo WorldSupporter donateur bent, of je past dit later aan op de user page van je account
  • Kom je er niet uit, neem dan even contact op! Of check de veel gestelde vragen

Kom je er niet helemaal uit of heb je problemen met inloggen?



 JoHo WorldSupporter donateur worden

JoHo donateurschap (€5,- per jaar)

  • Voor wie €10,- korting wil op zijn JoHo abonnement
  • Voor wie JoHo WorldSupporter en JoHo projecten wil steunen
  • Voor wie gebruik wil maken van alle gedeelde materialen op WorldSupporter

 JoHo abonnementen

    JoHo abonnement (€20,- per jaar)

    • Voor wie online volledig gebruik wil maken van alle JoHo's en boeksamenvattingen voor alle fases van een studie, met toegang tot alle online HBO & WO boeksamenvattingen en andere studiehulp op zowel WorldSupporter.org als JoHo.org
    • Voor wie gebruik wil maken van de gesponsorde samenvattingen (en er met zijn pinpoints 10 gratis kan afhalen in een JoHo support center of bij een JoHo partner)
    • Voor wie gebruik wil maken van de vacatureservice en bijbehorende keuzehulp & advieswijzers
    • Voor wie gebruik wil maken van keuzehulp en advies bij werk in het buitenland, lange reizen, vrijwilligerswerk, stages en studie in het buitenland

    Steun JoHo en steun jezelf door JoHo WorldSupporter donateur te worden

    Direct Donateur Worden



    Contributions, Comments & Kudos

    Add new contribution

    This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.
    Image CAPTCHA
    Enter the characters shown in the image.
    Summaries & Study Note of Dara Yapp
    Join World Supporter
    Join World Supporter
    Log in or create your free account

    Why create an account?

    • Your WorldSupporter account gives you access to all functionalities of the platform
    • Once you are logged in, you can:
      • Save pages to your favorites
      • Give feedback or share contributions
      • participate in discussions
      • share your own contributions through the 11 WorldSupporter tools
    Access level of this page
    • Public
    • WorldSupporters only
    • JoHo members
    • Private
    35 1
    Selected Categories
    special isis de wereld in

    Waag jij binnenkort de sprong naar het buitenland? Verzeker jezelf van een goede ervaring met de JoHo Special ISIS verzekering