Multiple Linear Regression. Response Variable: Y Explanatory Variables: X 1 ,..., X k Model (Extension of Simple Regression): E ( Y ) = a + b 1 X 1 + + b k X k V ( Y ) = s 2
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Scatterplot Matrix of Average Fare, Distance, and Average Passengers (produced by STATA):
Partial Regression Plots: Showing whether a new predictor is associated with Y, after removing effects of other predictor(s):
After controlling for AVEPASS, DISTANCE is linearly related to FARE
After controlling for DISTANCE, AVEPASS not related to FARE
The P-value is based on the F-distribution with k numerator and (n-(k+1)) denominator degrees of freedom
P-value based on F-distribution with k-g and n-(k+1) d.f.