EXTENSIONS OF MULTIPLE REGRESSION
• Understand the utilization of dummy variables in multiple regression
• Understand the process of doing stepwise regressing
• Understand the concepts associated with correlation, multicolinearity, and nonlinear relationships
• Enable and use Excel’s Automatic Curve Fitter functionality
Chapter twelve provided an introduction to multiple regression. This chapter continues the discussion of multiple regression. In particular, this chapter considers the use and effect of dummy variables in multiple regression, the selection of best models in multiple regression, correlation among independent variables and the effect of this correlation, and assessing nonlinear relationships.