Chapter 13: Multiple Linear Regression
Dummy Variable
A variable used to model the effect of categorical independent variables in a regression model; generally takes only the value zero or one.
Categorical Independent Variable
an independent variable with categorical data
Adjusted Multiple Coefficient of Determination
A measure of the goodness of fit of the estimated multiple regression equation that adjusts for the number of independent variables in the model and thus avoids overestimating the impact of adding more independent variables.
Multiple Coefficient of Determination
A measure of the goodness of fit of the estimated multiple regression equation. It can be interpreted as the proportion of the variability in the dependent variable that is explained by the estimated regression equation.
Multiple Regression Model
The mathematical equation that describes how the dependent variable y is related to the independent variables x1,x2,...,xp and an error term E.
Least Squares Method
The method used to develop the estimated regression equation. It minimizes the sum of squared residuals (the deviations between the observed values of the dependent variable, yi, and the estimated values of the dependent variable, y^i).
Multicollinearity
The term used to describe the correlation among the independent variables.
Multiple Regression Analysis
regression analysis involving two or more independent variables
Estimated Multiple Regression Equation
the estimate of the multiple regression equation based on sample data and the least squares method
Multiple Regression Equation
the mathematical equation relating the expected value or mean value of the dependent variable to the values of the independent variables
