Statistics 101 – Multivariate Regression and Interpreting Regression Results (Part 3 of 3)
Tom Spencer
JUNE 29, 2019
Simple linear regression is an important tool for understanding relationships between quantitative data, but it has its limitations. One obvious deficiency is the constraint of having only one independent variable, limiting models to one factor, such as the effect of the systematic risk of a stock on its expected returns. Real relationships are often much more complex, with multiple factors.
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