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Mathematics
Set Theory, Logic, Probability, Statistics
Limitations of Multivariate Linear Regression
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[QUOTE="FactChecker, post: 6470222, member: 500115"] You can use some transformations of the ##x_i## variables if they look like their relationship to ##y## is nonlinear. The new transformed variables can then be used in the linear regression. In fact, it is common to include terms like ##c_ix_ix_k##. (Because you are allowed to transform the ##x_i## variables, the term "linear" refers more to how the ##c_i## coefficients appear than to how the ##x_i## variables appear.) Also, there are stepwise regression techniques that will not end up including ##x_i## variables unless they give a statistically significant improvement to the relationship. So stepwise linear regression can still be applied even if the ##x_i## variables are strongly dependent. That is a good thing, the total independence of many variables is not common in many applications. [/QUOTE]
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Limitations of Multivariate Linear Regression
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