What is 'Multiple Linear Regression  MLR'
Multiple linear regression (MLR) is 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
BREAKING DOWN '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.

Linear Relationship
A statistical term used to describe the directly proportional ... 
Error Term
A variable in a statistical and/or mathematical model, which ... 
Sensitivity Analysis
Sensitivity analysis is a technique used to determine how different ... 
Endogenous Variable
A classification of a variable generated by a statistical model ... 
Default Model
A type of model used by financial institutions to determine the ... 
Stochastic Modeling
A method of financial modeling in which one or more variables ...

Economics
Understanding Regression
Regression is a statistical analysis that attempts to predict the effect of one or more variables on another variable. 
Fundamental Analysis
Explaining Linear Relationships
A linear relationship describes the proportionality between an independent variable and a dependent variable. 
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. 
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. 
Stock Analysis
Linear Technology May Not Be The Best Rebound Play
Linear is a highquality company, but maybe not a great stock for today's market. 
Investing
What's a Sensitivity Analysis?
Sensitivity analysis is used in financial modeling to determine how one variable (the target variable) may be affected by changes in another variable (the input variable). 
Entrepreneurship
Calculating (Small) Company Credit Risk
Determining creditworthiness of smaller and mediumsized corporations isn't as easy as for larger companies, but these tips can help. 
Investing News
How Do Professionals Forecast Crude Oil Prices?
Discover how the future price of oil is predicted with a weighted combination of mathematical tools. Economists largely use five main models as their base. 
Trading Strategies
When Is A Bull Market Not A Bull Market?
During some bull or bear moves in the stock markets, investors will be going with the trend, but day traders may find they cannot. 
Fundamental Analysis
Scenario Analysis Provides Glimpse Of Portfolio Potential
This statistical method estimates how far a stock might fall in a worstcase scenario.

What is the difference between linear regression and multiple regression?
Learn the difference between linear regression and multiple regression and how multiple regression encompasses not only linear ... Read Answer >> 
What are some of the more common types of regressions investors can use?
Learn about the most common types of regressions investors use to model asset prices including linear regressions and multiple ... Read Answer >> 
What variables are most important when making a prediction through sensitivity analysis?
Explore sensitivity analysis and how this method considers different variables to determine a course of action based on statistical ... Read Answer >> 
How can I run linear and multiple regressions in Excel?
Learn the steps involved in running a regression in Microsoft Excel: preparations, uploading data and using the regression ... Read Answer >> 
How is the standard error used in trading?
Understand how the standard error is used in statistics and what it measures. Learn how the standard error is used in trading ... Read Answer >> 
When does positive correlation prove causation?
When is correlation causation? Never. Use correlation wisely, the way a true statistician would. Don't get fooled by fancy ... Read Answer >>