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MLR Sample Problem Solving by Hand

The document provides a step-by-step guide on performing multiple linear regression by hand, detailing the calculations needed for regression sums and coefficients. It includes an example dataset with two predictor variables and explains how to interpret the resulting regression equation. The final estimated equation is ŷ = -6.867 + 3.148x1 – 1.656x2, illustrating the relationship between the predictors and the response variable.

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Joshua Gabriel Bornales
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38 views3 pages

MLR Sample Problem Solving by Hand

The document provides a step-by-step guide on performing multiple linear regression by hand, detailing the calculations needed for regression sums and coefficients. It includes an example dataset with two predictor variables and explains how to interpret the resulting regression equation. The final estimated equation is ŷ = -6.867 + 3.148x1 – 1.656x2, illustrating the relationship between the predictors and the response variable.

Uploaded by

Joshua Gabriel Bornales
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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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.

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


 Σx22 = ΣX22 – (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 constant.

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