Multiple Analysis

Introduction

Multiple regression is an extension of simple regression that is used to predict the value of an unknown variable based on the value of two or more known variables. This model uses two or more independent (or “exploratory”) variables to determine a single dependent (or “criterion”) variable.

Examples

For instance, multiple regression could be used to understand whether test performance can be predicted based on gender, class attendance, amount of time spent studying, and amount of sleep the student received the night prior.

Applications

Business applications for multiple regression analysis include:

  • Determining employee salaries based on years of experience, level of education, special skills, references, and previous job performance
  • Product pricing
  • Assessing the value of stocks