BRM - Chapter 17 – Multiple Regression

17.1 Model and Required conditions

Response surface: In statistics response surface methodology explores the relationships between
several explanatory variables and one or more response variables. Statistical approaches such as RSM
can be employed to maximise the production of a special substance by optimisation of operational
factors.

Required conditions for error variable:

1. The probability distribution of the error

variable E is normal.
2. The mean of the error variable is 0.
3. The standard deviation of E is standard
deviation E, which is a constant.
4. The errors independent.

Calculations done by computer hard to do by

hand…

17.2 Estimating the coefficients and assessing the model

Steps Multiple Regression Equations:

1. Select variables that you believe are linearly related to the dependent variable.
2. Use a computer and software to generate the coefficients and the statistics used to assess
the model.
3. Diagnose violations of required conditions. If there are problems, attempt to remedy them.
4. Assess the model’s fit. Three statistics that perform this function are the standard error
estimate, the coefficient of determination, and the F-test of the analysis of variance. The first
two were introduced in CH 16; The third will be introduced here.
5. If we are satisfied with the model’s fit and that the required conditions are met, we can
interpret the coefficients and test them as we did in Chapter 16. We use the model to predict
a value of the dependent variable or estimate the expected value of the dependent variable.

Coefficient of determination adjusted for degrees of freedom: Has been adjusted to take into
account the sample size and the number of independent variables. The rationale for this statistic is
that, if the number of independent variables k is large relative to the sample size n, the unadjusted R 2
value may be unrealistically high.

 If n is considerably larger than k, the unadjusted and adjusted R 2 values will be similar. But if
SSE is quite different from 0 and k is large compared to n, the unadjusted and adjusted values
of R2 will differ substantially. If such differences exist, the analyst should be alerted to a
potential problem in interpreting the coefficient of determination. The model’s fit is not
good.