CHAPTER 13

Multiple Regression Analysis

LEARNING OBJECTIVES

This chapter presents the potential of multiple regression analysis as a tool in business decision making and its applications, thereby enabling you to:

  1. Explain how, by extending the simple regression model to a multiple regression model with two independent variables, it is possible to determine the multiple regression equation for any number of unknowns.
  2. Examine significance tests of both the overall regression model and the regression coefficients.
  3. Calculate the residual, standard error of the estimate, coefficient of multiple determination, and adjusted coefficient of multiple determination of a regression model.
  4. Use a computer to find and interpret multiple regression outputs.

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