Linear Regression vs. Multiple Regression Example Consider an analyst who wishes to establish a relationship between the daily change in a company's stock prices and daily changes in trading volume .

- Multiple linear regression formula. The equation for multiple linear regression extended to two explanatory variables (x 1 and x 2) is as follows: This can be extended to more than two explanatory ...

Linear Regression in Finance. The goal of a linear regression model is to estimate the magnitude of a relationship between variables and whether or not it is statistically significant.