MULTIPLE LINEAR REGRESSION

Abstract

What happens when we are trying to derive a (linear) relationship between one dependent variable y and multiple k > 1 different independent variables xj? Well, in that case, we need multiple different parameters (slopes), one for each independent variable! For example, what is the linear relationship between the maintenance fees (costs y) of a bank as a function of the number of the new applications (x1) and the number of outstanding loans (x2)?