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Multiple Regression

Multiple regression is a statistical method used to predict an outcome based on multiple independent variables, improving accuracy by considering various influences. The model is represented by a linear equation that estimates the contributions of each variable, and the predictions are derived using the least squares method. Key concepts include the interpretation of coefficients, sums of squares, and the basic quadratic model for understanding relationships between variables.

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2 views

Multiple Regression

Multiple regression is a statistical method used to predict an outcome based on multiple independent variables, improving accuracy by considering various influences. The model is represented by a linear equation that estimates the contributions of each variable, and the predictions are derived using the least squares method. Key concepts include the interpretation of coefficients, sums of squares, and the basic quadratic model for understanding relationships between variables.

Uploaded by

Krissan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Multiple Regression Models

What is Multiple Regression?


 Predicting an outcome (dependent
variable) based upon several
independent variables simultaneously.
 Why is this important?
 Behavior is rarely a function of just one
variable, but is instead influenced by many
variables. So the idea is that we should be
able to obtain a more accurate predicted
score if using multiple variables to predict our
outcome.
The Multiple Linear Regression Model

 Regression applications in which there are


several independent variables, x1, x2, … , xk . A
multiple linear regression model with p
independent variables has the equation

 y o  1x1    p x p  
 βi is the intercept and βi determines the
contribution of the independent variable xi

 The ε is a random variable with mean 0 and


variance σ2.
The Prediction Equation
 The equation for this model fitted to data is
ŷ b o  b1x1    b p x p
 Where ŷ denotes the “predicted” value
computed from the equation, and bi denotes
an estimate of βi.

 As with Simple Linear Regression, they’re


obtained by the method of least squares
 Among the set of all possible values for the
parameter estimates, I find the ones which
minimize the sum of squared residuals.
Basic Idea
With multiple regression, we form a 'linear
combination' of multiple variables to
best predict an outcome, and then we
assess the contribution that each
predictor variable makes to the
equation.
research question might be:
 “How much does an independent variable
contribute to explaining dependent variable
after the effect of another independent
 variable is taken into account?”
Sums of squares
 The sums of squares SSR, SSE, and
SST have the same definitions in
relation to the model as in simple
linear regression:

R   y
ˆ  y
2
SSR
SSE   y  y
ˆ
2

SST   y  y 
2
SST = SSM + SSE

 The value of SST does not change with the


model.
 It depends only on the values of the dependent variable
y.

 SSE decreases as variables are added to a


model, and SSM increases by the same amount.
 This amount of increase in SSM is the amount of
variation due to variables in the larger model that was
not accounted for by variables in the smaller model.
Basic Quadratic Model

E(y) = β0 + β1x + β2x2


• β0 is the y-intercept of the curve; value
of E(y) when x = 0
• β1 is the shift parameter; changing the
value of β1 shifts the parabola to the
right (if increased) or left (with
decrease)
• β2 is the rate of curvature
Interpreting the Coefficient (β) Estimates
 Estimate of β0 can only be meaningfully interpreted
if the sampled range of the independent variable
includes zero.
 The estimated coefficient of the first-order terms no
longer represent the slope and cannot typically be
meaningfully interpreted.
 The sign of the coefficient associated with the
quadratic term (x2) indicates if curve is
 concave downward (mound-shaped): -
 concave upward (bowl-shaped): +

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