when creating a graph,the regression lines can be fitted

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A regression with two independent variables will produce a formula with this basic structure:

y= c + b₁(x₁) + b₂(x₂)

In this equation, y is the dependent variable, c is a constant, b₁ is the first regression coefficient and x₁ is the first independent variable. The second coefficient and second independent variable are b₂ and x₂. Drawing from the above example, the stock price would be y, the S&P 500 would be x₁ and the unemployment rate would be x₂. The coefficient of each independent variable represents the degree of change in y for each additional unit in that variable. If the S&P 500 increases by one, the resulting y or share price will go up by the amount of the coefficient. The same is true for the second independent variable, the unemployment rate. In a simple regression with one independent variable, that coefficient is the slope of the line of best fit. In this example or any regression with two independent variables the slope is a mix of the two coefficients. The constant c is the y-intercept of the line of best fit.

ekkarill92 answered 1 year ago

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