1. Section 5
Multiple Regression

2. Example
A researcher wants to determine how employee salaries at a certain company are determined.
Dependent or response variable
y = salary
Independent or explanatory variables
x1 = years of employment
x2 = years of experience
x3 = years of education

3. Example Continued Regression equation
y = 29, x x x3
Use the regression equation to predict an employee’s salary given the following conditions: 12 years of current employment, 5 years of experience, and 16 years of education.

4. Confidence Interval for Coefficients=
number of coefficient
= coefficient
= standard error corresponding to coefficient
df = n – k – 1
n = number of data values
k = number of independent/explanatory
variables

5. Example
Compute a 90% confidence interval for if n = 8 and S2 = for the equation x1 = x x x4