Simple regression is a very powerful tool to learn regression and understand the impact of one factor on what we care about. In practice, however, simple regression is rarely the evidence for managerial decisions. This is because what we care about are most likely correlated with many factors, which work together to bring about the impact. For example, a person’s progress is not a simple function of one family member, but that of family, friends, school teacher, and many more.
The proper way to analyze the impact of a factor is to assess in the context of multiple regression. The following video simulates multiple regression in Excel.
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