Pampanga State Agricultural University

MULTIPLE
LINEAR
REGRESSION
MODEL
Pauline Lagman
Engineering | 2024
OBJECTIVES
Pauline Lagman | PSAU

Objective 01 Objective 02

TO UNDERSTAND MULTIPLE HOW TO PERFORM MULTIPLE

LINEAR REGRESSION. LINEAR REGRESSION.

01
INTODUCTION
Pauline Lagman | Engineering 2024

What is Multiple Linear Regression?

• Multiple linear regression refers to a statistical technique that is used to

predict the outcome of a variable based on the value of two or more
variables.
• It is sometimes known simply as multiple regression, and it is an
extension of linear regression.
• The variable that we want to predict is known as the dependent variable,
while the variables we use to predict the value of the dependent variable
are known as independent or explanatory variables.

02
PREDICTION TABLE
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Figure 1: Multiple linear regression model predictions for individual observations.

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CONDITIONS
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Basic Condition for Multiple Regression

The basic conditions for Multiple Regression are listed below:

• There must be a linear relationship between the independent
variable and the outcome variables.
• It considers the residuals to be normally distributed.
• It assumes that the independent variables are not highly
correlated with each other.

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FORMULA Multiple Linear Regression Formula
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Where:
• yi​is the dependent or predicted variable
• β0 is the y-intercept, i.e., the value of y when both xi and x2 are 0.
• β1 and β2 are the regression coefficients representing the change in y relative
to a one-unit change in xi1 and xi2, respectively.
• βp is the slope coefficient for each independent variable
• ϵ is the model’s random error (residual) term.

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PROBLEM
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EXAMPLE: Multiple Linear Regression

Suppose we have the following dataset with one

response variable y and two predictor variables X1
and X2:

NOTE: Use the following steps to fit a multiple

linear regression model to this dataset.

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SOLUTION
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Step 1:

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SOLUTION
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Step 2: Calculate Regression Sums.

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SOLUTION
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Step 3: Calculate b0, b1, and b2.

Next, we calculate the value of b0 using the formula:

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SOLUTION
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Using the formula

The estimated regression equation is:

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RESULT
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Step 4: Interpretation of the results.

β0 = −6.867, indicates if both predictor variables are equal to zero,
then the mean value for y is -6.867.

β1 = 3.148, indicates one unit increase in x1 is associated with a

3.148 unit increase in y, assuming x2 is held constant.

β2 = −1.656, indicates one unit increase in x1 is associated with a

1.656 unit decrease in y, assuming x1 is held constant.

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RESULT
Pauline Lagman | Engineering 2024

Multiple linear regression predicts a dependent

variable based on two or more independent variables.
Remember the 4 'S’s:
1. Setup
2. Scatterplot
3. Significance
4. Summary

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 Pauline Lagman | Engineering 2024

REFERENCES:  https://www.statology.org/multiple-linear-regression-by-hand/
 https://testbook.com/maths/multiple-regression
 https://www.investopedia.com/ask/answers/060315/what-differenc
e-between-linear-regression-and-multiple-regression.asp#:~:text=
Multiple%20linear%20regression%20is%20a,linear%20regressio
n%20is%20often%20better.

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 Pampanga State Agricultural University

THANK
YOU
Pauline D. Lagman
Engineering | 2024