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Multiple Linear Regression

Multiple Linear Regression


Multiple Linear Regression

Why organizations should use it? To model the relationship between several explanatory/independent variables and a response variable by fitting a linear equation to observed data.

How organizations should use it? By gathering data’s, setting hypotheses, constructing regression chart and validating results.

What is it for? Regression analysis tool.

Multiple Linear Regression steps are composed of:

  1. Settlement of the test conditions
  2. Determination of null and alternative hypotheses
  3. Determination of how well the model fits the data’s through F-test and R²
  4. Calculation of the critical t-value (as test statistic) for the individual regression coefficients
  5. Determination whether the null hypothesis should be rejected and conclusion

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