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    Multiple Linear Regression by Hand (Step-by-Step) - Statology

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    Aatmaj Salunke
    This document provides a step-by-step explanation of performing multiple linear regression by hand using an example dataset with one response variable (y) and two predictor variables (X1 and X2). It outlines the 5 steps to fit a multiple linear regression model: 1) calculate additional variables from the data, 2) calculate regression sums, 3) calculate coefficients, 4) place coefficients in the regression equation, and 5) interpret the regression equation.

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    Multiple Linear Regression by Hand (Step-by-Step) - Statology

    Uploaded by

    Aatmaj Salunke
    541 views4 pages
    This document provides a step-by-step explanation of performing multiple linear regression by hand using an example dataset with one response variable (y) and two predictor variables (X1 and X2). It outlines the 5 steps to fit a multiple linear regression model: 1) calculate additional variables from the data, 2) calculate regression sums, 3) calculate coefficients, 4) place coefficients in the regression equation, and 5) interpret the regression equation.

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    This document provides a step-by-step explanation of performing multiple linear regression by hand using an example dataset with one response variable (y) and two predictor variables (X1 and X2). It outlines the 5 steps to fit a multiple linear regression model: 1) calculate additional variables from the data, 2) calculate regression sums, 3) calculate coefficients, 4) place coefficients in the regression equation, and 5) interpret the regression equation.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    541 views4 pages

    Multiple Linear Regression by Hand (Step-by-Step) - Statology

    Uploaded by

    Aatmaj Salunke
    This document provides a step-by-step explanation of performing multiple linear regression by hand using an example dataset with one response variable (y) and two predictor variables (X1 and X2). It outlines the 5 steps to fit a multiple linear regression model: 1) calculate additional variables from the data, 2) calculate regression sums, 3) calculate coefficients, 4) place coefficients in the regression equation, and 5) interpret the regression equation.

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     MENU

     NOVEMBER 18, 2020  BY ZACH

    Multiple Linear Regression by Hand (Step-by-


    Step)

    Multiple linear regression is a method we can use to


    quantify the relationship between two or more predictor
    variables and a response variable.

    This tutorial explains how to perform multiple linear


    regression by hand.

    Example: Multiple Linear Regression by Hand

    Suppose we have the following dataset with one response


    variable y and two predictor variables X1 and X2:
    Use the following steps to fit a multiple linear regression
    model to this dataset.

    Step 1: Calculate X12, X22, X1y, X2y and X1X2.

    Step 2: Calculate Regression Sums.

    Next, make the following regression sum calculations:

    Σx12 = ΣX12 – (ΣX1)2 / n = 38,767 – (555)2 / 8 = 263.875


    2 2
    Σx2 = ΣX2 – (ΣX2)2 / n = 2,823 – (145)2 / 8 = 194.875
    Σx1y = ΣX1y – (ΣX1Σy) / n = 101,895 – (555*1,452) / 8 =
    1,162.5
    Σx2y = ΣX2y – (ΣX2Σy) / n = 25,364 – (145*1,452) / 8 =
    -953.5
    Σx1x2 = ΣX1X2 – (ΣX1ΣX2) / n = 9,859 – (555*145) / 8 =
    -200.375

    Step 3: Calculate b0, b1, and b2.

    The formula to calculate b1 is: [(Σx22)(Σx1y)  – (Σx1x2)


    (Σx2y)]  / [(Σx12) (Σx22) – (Σx1x2)2]

    Thus, b1 = [(194.875)(1162.5)  – (-200.375)(-953.5)]  /


    [(263.875) (194.875) – (-200.375)2] = 3.148

    The formula to calculate b2 is: [(Σx12)(Σx2y)  – (Σx1x2)


    (Σx1y)]  / [(Σx12) (Σx22) – (Σx1x2)2]

    Thus, b2 = [(263.875)(-953.5)  – (-200.375)(1152.5)]  /


    [(263.875) (194.875) – (-200.375)2] = -1.656
    The formula to calculate b0 is: y – b1X1 – b2X2

    Thus, b0 = 181.5 – 3.148(69.375) – (-1.656)(18.125)


    = -6.867

    Step 5: Place b0, b1, and b2 in the estimated linear


    regression equation.

    The estimated linear regression equation is: ŷ = b0 + b1*x1


    + b2*x2

    In our example, it is ŷ = -6.867 + 3.148x1 – 1.656x2

    How to Interpret a Multiple Linear Regression


    Equation

    Here is how to interpret this estimated linear regression


    equation: ŷ = -6.867 + 3.148x1 – 1.656x2

    b0 = -6.867. When both predictor variables are equal to


    zero, the mean value for y is -6.867.

    b1 = 3.148. A one unit increase in x1 is associated with a


    3.148 unit increase in y, on average, assuming x2 is held
    constant.

    b2 = -1.656. A one unit increase in x2 is associated with a


    1.656 unit decrease in y, on average, assuming x1 is held

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