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
due to the complexity of
coefficients for multiple
independent variables.
#2. Determining the significance
of coefficients becomes more
challenging with an increasing
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.