IE 2201
MULTIPLE
LINEAR REGRESSION
MARK EMRIEL PARLAN
MODULE 2
3903
WHAT IS IE 2201
MULTIPLE LINEAR REGRESSION?
Multiple linear regression is an extension of the
methodology of simple linear regression. Likewise, Simple
Linear Regression is used to study the two variables in
which one variable is the independent variable (X) and the
other one is the dependent variable (Y). In other words,
predict the change in the dependent variable according to
the change in the independent variable
WHEN TO USE IE 2201
MULTIPLE LINEAR REGRESSION?
We use Multiple linear regression to study more than two
variables. In fact, the basic difference between simple and
multiple regression is in terms of explanatory variables. In
multiple regression, unlike simple linear regression, there is
more than one independent variable (X), and these
independent variables are used to predict a single
dependent variable (Y). Another key point is that they
predict the change in the dependent variable (Y) according
to the change in independent variables.
Example: The house price (Dependent variable Y) depends
on the various Independent variables (X) like locality,
number of bedrooms, number of bathrooms, age of the
house, and also the square foot of the house.
EXAMPLES OF IE 2201
MULTIPLE LINEAR REGRESSION
Let's consider a scenario where you are trying to predict the
final exam score of students. What could be the factors
affecting the result?
EXAMPLES OF IE 2201
MULTIPLE LINEAR REGRESSION
Let's consider a scenario where you are trying to predict the
final exam score of students. What could be the factors
affecting the result?
Y (dependent variable): ____________
X1 (independent variable): _____________
X2 (independent variable): ____________
X3 (independent variable): ____________
EXAMPLES OF IE 2201
MULTIPLE LINEAR REGRESSION
Let's consider a scenario where you are trying to predict the
final exam score of students. What could be the factors
affecting the result?
Y (dependent variable): Final Exam Score
X1 (independent variable): Number of hours studied
X2 (independent variable): Previous test score
X3 (independent variable): Attendance rate
EXAMPLES OF IE 2201
MULTIPLE LINEAR REGRESSION
Can you provide an example of how multiple linear
regression could be applied in an industrial engineering
setting to improve a process or system?
EXAMPLES OF IE 2201
MULTIPLE LINEAR REGRESSION
Scenario: Reducing Defects in a Manufacturing Process
In a factory, the goal is to reduce the number of defective products produced during manufacturing. You want to
identify the factors contributing to defects and use multiple linear regression to predict and minimize defects.
Dependent Variable (Y): Number of defective units produced per day
Independent Variables (X):
a. Machine Age (X1): Age of the machinery (in years)
b. Operator Shift Length (X2): Number of hours per shift
c. Raw Material Temperature (X3): Temperature of raw materials (in degrees Celsius)
d. Machine Vibration Level (X4): Vibration intensity of the machinery (in meters per second squared, m/s²)
e. Ambient Humidity (X5): Humidity level in the factory (as a percentage)
ESTIMATED REGRESSION LINE IN IE 2201
MULTIPLE LINEAR REGRESSION
INTERPRETING THE COEFFICIENTS OF IE 2201
MULTIPLE LINEAR REGRESSION
INTERPRETING THE COEFFICIENTS OF IE 2201
MULTIPLE LINEAR REGRESSION
FORMULAS USED IN IE 2201
MULTIPLE LINEAR REGRESSION
SOLVING IE 2201
MULTIPLE LINEAR REGRESSION
SOLVING IE 2201
MULTIPLE LINEAR REGRESSION
SOLVING IE 2201
MULTIPLE LINEAR REGRESSION
SOLVING IE 2201
MULTIPLE LINEAR REGRESSION
SOLVING IE 2201
MULTIPLE LINEAR REGRESSION
SOLVING IE 2201
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SOLVING IE 2201
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SOLVING IE 2201
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Develop a multiple linear regression model using this dataset
SOLVING IE 2201
MULTIPLE LINEAR REGRESSION
Multiple linear regression is a statistical technique used to model the relationship between one dependent variable and two or more independent variables. The general
form of the equation is:
Y: Dependent variable (the outcome we want to predict).
β₀: Intercept (the value of Y when all X variables are 0).
β₁, β₂, ..., βn: Coefficients (represent the change in Y for a one-unit change in the respective X variable, holding other variables constant).
X₁, X₂, ..., Xn: Independent variables (the predictors).
ε: Error term (captures the variation in Y that cannot be explained by the X variables).
Develop a multiple linear regression model using this dataset
SOLVING IE 2201
MULTIPLE LINEAR REGRESSION
SOLVING IE 2201
MULTIPLE LINEAR REGRESSION
SOLVING IE 2201
MULTIPLE LINEAR REGRESSION
SOLVING IE 2201
MULTIPLE LINEAR REGRESSION
SOLVING IE 2201
MULTIPLE LINEAR REGRESSION
SOLVING IE 2201
MULTIPLE LINEAR REGRESSION