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                                                                         Chapter 5
                                             When Two Variables Are Better
                                              than One: Multiple Regression
                                         In This Chapter
                                           Getting the basic ideas behind a multiple regression model
                                           Finding, interpreting, and testing coefficients
                                           Checking model fit
                                                       he idea of regression is to build a model that estimates or predicts one
                                                    Tquantitative variable (y) by using at least one other quantitative variable
                                                    (x). Simple linear regression uses exactly one x variable to estimate the y
                                                    variable. (See Chapter 4 for all the information you need on simple linear
                                                    regression.) Multiple linear regression, on the other hand, uses more than
                                                    one x variable to estimate the value of y.
                                                    In this chapter, you see how multiple regression works and how to apply it to
                                                    build a model for y. You see all the steps necessary for the process, including
                                                    determining which x variables to include, estimating their contributions to
                                                    the model, finding the best model, using the model for estimating y, and
                                                    assessing the fit of the model. It may seem like a mountain of information, but
                                                    you won’t regress on the topic of regression if you take this chapter one step
                                                    at a time.



                                         The Multiple Regression Model


                                                    Before being able to jump right into using the multiple regression model, its
                                                    good to get a feel for what it’s all about. In this section, you see the useful-
                                                    ness of multiple regression as well as the basic elements of the multiple
                                                    regression model. Some of the ideas are just an extension of the simple linear








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