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i. Multiple regression analysis examines the relationship of several dependent variables on the
Independent variable.
ii. A multiple regression equation defines the relationship between the dependent variable and the
Independent variables in the form of an equation.
iii. Autocorrelation often happens when data has been collected over periods of time.
Dummy Variable
A variable used to model the effect of categorical independent variables. A dummy variable may take only the value zero or one.
Categorical Independent Variables
Variables that divide subjects into groups but do not allow for any kind of mathematical operation among groups.
Regression Model
The equation that describes how y is related to x and an error term; in simple linear regression, the regression model is y = b0 + b1x + e.
Adjusted Multiple Coefficient
A statistical measure adjusted for the number of variables in a model, used to assess the goodness-of-fit of a regression model.
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