Business Statistics

Chapter 15 | Multiple Regression Analysis 551

15.15.3 Stepwise Regression

Stepwise regression is the most widely used search procedure for developing a “best” regression model

without examining all possible models. In stepwise regression, variables are either added or deleted in

the regression model using a step-by-step process. When no significant explanatory variable can be

added or deleted in the last fitted model, the procedure of stepwise regression terminates and gives the

best regression model. Generally, the search procedure can be performed easily by using computer soft-

ware programs. Figures 15.64 and 15.65 are the partial regres ...