DEFINITION of 'Multiple Linear Regression  MLR'
A statistical technique that uses several explanatory variables to predict the outcome of a response variable. The goal of multiple linear regression (MLR) is to model the relationship between the explanatory and response variables.
The model for MLR, given n observations, is:
y_{i} = B_{0} + B_{1}x_{i1} + B_{2}x_{i2} + ... + B_{p}x_{ip} + E_{i} where i = 1,2, ..., n
INVESTOPEDIA EXPLAINS 'Multiple Linear Regression  MLR'
MLR takes a group of random variables and tries to find a mathematical relationship between them. The model creates a relationship in the form of a straight line (linear) that best approximates all the individual data points.
MLR is often used to determine how many specific factors such as the price of a commodity, interest rates, and particular industries or sectors, influence the price movement of an asset. For example, the current price of oil, lending rates, and the price movement of oil futures, can all have an effect on the price of an oil company's stock price. MLR could be used to model the impact that each of these variables has on stock's price.

Control
1. The use of power to influence an outcome. For example, working ... 
Nonlinearity
A relationship which cannot be explained as a linear combination ... 
Stepwise Regression
The stepbystep iterative construction of a regression model ... 
Growth Curve
A graphical representation of how a particular quantity increases ... 
Statistical Significance
A result that is not likely to occur randomly, but rather is ... 
Beta
A measure of the volatility, or systematic risk, of a security ...

Is finance an art or a science?
The short answer to this question is "both". Finance, as a field of study and an area of business, definitely has strong ... Read Full Answer >>

Investing Basics
Regression Basics For Business Analysis
This tool is easy to use and can provide valuable information on financial analysis and forecasting. Find out how. 
Investing Basics
What Investors Should Know About Interest Rates
Understanding interest rates helps you answer the fundamental question of where to put your money. 
Active Trading
Modern Portfolio Theory: Why It's Still Hip
See why investors today still follow this old set of principles that reduce risk and increase returns through diversification. 
Active Trading
The Linear Regression Of Time and Price
This investment strategy can help investors be successful by identifying price trends while eliminating human bias. 
Professionals
Style Matters In Financial Modeling
If you're looking to get a job as an analyst, you'll need to know how to work it. 
Economics
Understanding Perpetuity
Perpetuity means without end. In finance, a perpetuity is a flow of money that will be received on a regular basis without a specified ending date. 
Options & Futures
Examples Of ExchangeTraded Derivatives
We look at some of the most common exchangetraded derivatives. 
Options & Futures
Advantages Of Trading Futures Over Stocks
We look at the top eight advantages of trading futures over stocks. 
Fundamental Analysis
What is a Null Hypothesis?
In statistics, a null hypothesis is assumed true until proven otherwise. 
Options & Futures
Why Trading Coffee Futures Is A Zero Sum Game
Coffee futures trading is as close to a zerosum game as you might find in investing. We look at the risks and rewards.