Multiple analysis deals with three or more variables, one dependent and two or more independent. The lack of precision can be attributed to a number of reasons. Due to the complexity of most marketing and other business problems, complex relationships exist between variables. Even when all relevant variables are included in a model, the functional form of the relationship between the dependent and independent variables may differ from the one selected. The measurement of the dependent and independent variables may be imperfect.
Data are typically available only at an aggregate level.
A statistical technique that fits a straight line to a scatter diagram by using the shortest vertical distances of all the points from the straight line. The equation derived by this method will yield a regression line that best fits the data. Regression coefficients are the values that represent the effect of the individual independent variables on the dependent variable. This is also called the standard error of estimate , since it can be used to measure the error of the estimates of individual Y values based on the regression line. When these values are summed and squared individually, they estimate the explained and unexplained variation of Y .