Business Statistics

Chapter 15 | Multiple Regression Analysis 563

Multiple regression analysis is a statistical tool where several inde-

pendent or explanatory variables can be used to predict one depen-

dent variable. In multiple regression, sample statistics b

0

, b

1

, b

2

, …,

b

k

provide the estimate of population parameters 

0

, 

1

, 

2

, …, 

k

.

In multiple regression, the coefficient of multiple determination (R

2

)

is the proportion of variation in the dependent variable y that is ex-

plained by the combination of independent (explanatory) variables.

In multiple regression, adjusted R

2

is used when a researcher wants

to compare two or more regression models with the ...