Three Variable Regression Model. We assume that the ϵ i have a normal distribution with mean 0. In many applications there is more than one factor that influences the response.
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Notation for the Population Model. Three-variable multiple linear regression model. To create the set of indicators or dummy variables we first decide on a reference group.
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The multiple regression equation with three independent variables has the form Y a b 1 X 1 b2x2 b3x3 where a is the intercept. This model generalizes the simple linear. In general the interpretation of a slope in multiple regression can be tricky. Notation for the Population Model.
