2.3.7.0 SUMMARY In this unit, we discussed the multiple regression model, a model in which there is more than one descriptive variable but a direct extension of the simple regression model having two new dimensions. We introduced the arrangement of flow for the multiple regression analysis and started with the derivation of formula by showing the linkage of the simple regression model and the multiple regression. However, we briefly discussed on interpretation and properties of multiple regression coefficients. For more understanding, the student may use the reference materials to lookup estimation procedures using values and presentation of results, aspects of arrangement of flow for the multiple regression analysis not discussed. Finally, the concept of multicollinearity as an existence of linear relationship in the midst of regressors was equally discussed in this unit. Students are shown two ways to alleviate multicollinearity being a problem associated with CLRM.
