Multiple Linear Regression
Multiple Linear Regression
• Multiple linear regression (MLR), also known simply as multiple regression,
is a statistical technique that uses several explanatory variables to predict
the outcome of a response variable.
• The goal of multiple linear regression (MLR) is to model the linear
relationship between the explanatory (independent) variables and
response (dependent) variable.
• Examples:
• The selling price of a house can depend on the desirability of the location,
the number of bedrooms, the number of bathrooms, the year the house
was built, the square footage of the lot and a number of other factors.
• The height of a child can depend on the height of the mother, the height of
the father, nutrition, and environmental factors.
Multiple linear regression formula
Calculation of b1 & b2
Equations
Equations
Equations
Question??
Y X1 X2
3.7 3 8
3.5 4 5
2.5 5 7
11.5 6 3
5.7 2 1
Solution
Y X1 X2 (X1)2 (X2)2 X1Y X2Y X1X2
3.7 3 8 9 64 -11.1 -29.6 24
3.5 4 5 16 25 14 17.5 20
2.5 5 7 25 49 12.5 17.5 25
11.5 6 3 36 9 69 34.5 18
5.7 2 1 4 1 11.4 5.7 2
Solution
Solution
Solution
Solution
Solution
Question??
Ques: Do any commodity (Y) depend on its price (X1) & Consumer
Income (X2) where Y=f(X1,X2).
Sales_Data Price (X1) Income(X2)
100 5 1000
75 7 600
80 6 1200
70 6 500
50 8 300
65 7 400
90 5 1300
100 4 1100
110 3 1300
60 9 300
