Multiple Linear Regression – Problem & Solution
Multiple Linear Regression – Problem & Solution Multiple Linear Regression explains the relationship between one dependent variable (Y) and two or more independent variables (X₁, X₂, …) . The general form: Y = a + b 1 X 1 + b 2 X 2 Y = a + b_1 X_1 + b_2 X_2 Y = a + b 1 X 1 + b 2 X 2 Where: a = Intercept b₁, b₂ = Partial regression coefficients 🔢 Example Problem (Two Independent Variables) 🔹 Question Fit the regression equation: Y = a + b 1 X 1 + b 2 X 2 Y = a + b_1 X_1 + b_2 X_2 Y = a + b 1 X 1 + b 2 X 2 Given data: Obs X₁ X₂ Y 1 1 2 4 2 2 1 3 3 3 4 8 4 4 3 7 ✅ Step 1: Model Y = a + b 1 X 1 + b 2 X 2 Y = a + b_1 X_1 + b_2 X_2 Y = a + b 1 X 1 + b 2 X 2 We use Normal Equations : ∑ Y = n a + b 1 ∑ X 1 + b 2 ∑ X 2 \sum Y = na + b_1\sum X_1 + b_2\sum X_2 ∑ Y = na + b 1 ∑ X 1 + b 2 ∑ X 2 ∑ X 1 Y = a ∑ X 1 + b 1 ∑ X 1 2 + b 2 ∑ X 1 X 2 \sum X_1Y = a\sum X_1 + b_1\sum X_1^2 + b_2\sum X_1X_2 ∑ X 1 Y = a ∑ X 1 + b 1 ∑ ...