MULTIPLE REGRESSION

Two-variable linear regression model

A single independent, or explanatory,
variable

A regression model with more than

one explanatory variable is known as
a multiple regression model,
multiple because multiple
influences (i.e., variables) may affect
the dependent variable.

 The simplest of the multiple regression

models, namely, the three-variable model
in which the behavior of the dependent
variable Y is examined in relation to two
explanatory variables, X2 and X3.
The three-variable PRF in its nonstochastic
form as

B1 is the intercept term. It represents the

average value of Y when X2 and X3 are set
equal to zero. The coefficients B2 and B3 are
called partial regression coefficients