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Understanding Multiple Regression

Multiple regression is an extension of simple linear regression that allows for analysis of relationships between multiple independent variables and a dependent variable. It models relationships in a multi-dimensional space rather than a straight line. However, adding more independent variables can lead to overfitting or multicollinearity issues without proper preprocessing like checking correlations between variables. Multiple regression is used in fields like economics, marketing, and health sciences to identify important predictors while accounting for the effects of other variables.

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IRISH BRACAMONTE
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366 views10 pages

Understanding Multiple Regression

Multiple regression is an extension of simple linear regression that allows for analysis of relationships between multiple independent variables and a dependent variable. It models relationships in a multi-dimensional space rather than a straight line. However, adding more independent variables can lead to overfitting or multicollinearity issues without proper preprocessing like checking correlations between variables. Multiple regression is used in fields like economics, marketing, and health sciences to identify important predictors while accounting for the effects of other variables.

Uploaded by

IRISH BRACAMONTE
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© © All Rights Reserved
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Multiple

regression
bracamonte, irish
MULTIPLE REGRESSION
Multiple regression is an extension of simple linear regression.

I.V D.V Simple Linear regression


one-to-one

I.V I.V
Multiple Regression
...or more D.V many-to-one
I.V I.V
SIMPLE REGRESSION VS. MULTIPLE REGRESSION

y = β0 + βX y = β0 + β1X1 + β2X2 + ... βpXp

Straight Line Plane in a Multi-dimensional Space

One slope term Slope term for each Independent Variable


New consideration
Adding more variables to a multiple regression analysis does not
guarantee better results and can even lead to OVERFITTING,
causing poor predictions.

The addition of more independent variables creates more


relationships among them, leading to MULTICOLLEARITY, which can
affect the accuracy of a multiple regression analysis.
New consideration
The goal of multiple regression is for all independent variables to be
associated with the dependent variable, but NOT correlated with each
other.

Because of multicollinearity and overfitting, there is a fair amount of


prep-work to do BEFORE conducting multiple regression analysis if one
is to do it properly.
Correlations
Scatter plots
Simple regression
Multiple regression is used in many fields to model the relationship
between a dependent variable and multiple independent variables.
Some applications include:

Economics Social sciences

Marketing Engineering

Health sciences
DISADVANTAGES OF MULTIPLE
REGRESSION
#1. Can be difficult to interpret #2. Determining the significance
due to the complexity of of coefficients becomes more
coefficients for multiple challenging with an increasing
independent variables. number of independent variables.

#3. Prone to multicollinearity,


which occurs when two or more
independent variables are highly
correlated.
AdvantageS OF MULTIPLE
REGRESSION
#1. Multiple regression allows for
the analysis of the relationship #2. Can identify the most
between multiple independent significant independent variables
variables and a dependent in a given data set.
variable.

#3. More robust than simple


regression, less affected by
outliers or unusual data points.
Powerful tool for

To sum up, Analyzing

More accurate than


THE MULTIPLE Simple Regression

REGRESSION ARE: More complex and time-


consuming

Can help identify which


independent variables
are most important.

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