Multiple regression predicts a single dependent variable, y, from two or more independent x variables.
MLR is a statistical technique for modeling the relationship between a dependent variable and two or more independent variables.
You own a pizza restaurant. There is a Pizza Hut across the street. You tracked average weekly prices, including coupons and specials.
|
Week
|
Your Price
|
Pizza Hut Price
|
Your Sales
|
|
1
|
16.95
|
11.50
|
2,208
|
|
2
|
12.50
|
12.50
|
2,682
|
|
3
|
19.99
|
10.50
|
2,061
|
|
4
|
13.99
|
12.00
|
2,526
|
|
5
|
18.88
|
11.00
|
2,158
|
|
6
|
22.95
|
9.25
|
1,732
|
|
7
|
11.99
|
13.50
|
2,877
|
|
8
|
15.50
|
11.50
|
2,312
|
|
9
|
12.75
|
12.00
|
2,606
|
|
10
|
14.99
|
12.00
|
2,488
|
|
Total
|
160. 49
|
115.75
|
23,650
|
a. What are the independent variables?
b. What is the dependent variable?
c. What is the regression equation?
d. What is the coefficient of determination?
e. If you charge $18.00 and Pizza Hut charges $11.00, what are your expected sales?