1. What is the purpose of using a multiple regression model?
The basic purpose of multiple regression is to create a model with a large number of factors, as well
as to determine the impact of each factor individually and their cumulative impact on the modeled
indicator.
2. What is Gauss-Markov theorem?
The Gauss-Markov Theorem states that if the OLS assumptions are satisfied, the sample
distribution remains as narrow as possible for objective estimations. The best in BLUE refers to
a sample distribution with minimal dispersion. This is the narrowest possible distribution of all
unbiased linear estimation methods!
*BLUE – best linear unbiased estimator
3. How would you interpret the slope (β1)?
Independent and dependent variables
