Multiple regression
The estimated relationship between a dependent variable and more than one explanatory variable. |
Similar financial terms
Options contract multipleA constant, set at $100, which when multiplied by the cash index value gives the dollar value of the stock index underlying an option. That is, dollar value of the underlying stock index = cash index value x $100 (the options contract multiple).
Multiple-issuer pools
Under the GNMA-II program, pools formed through the aggregation of individual issuers' loan packages.
Multiple-discriminant analysis (MDA)
Statistical technique for distinguishing between two groups on the basis of their observed characteristics.
Multiples
Another name for price/earnings ratios.
Multiple rates of return
More than one rate of return from the same project that make the net present value of the project equal to zero. This situation arises when the IRR method is used for a project in which negative cash flows follow positive cash flows. For each sign change in the cash flows, there is a rate of return.
Simple linear regression
A regression analysis between only two variables, one dependent and the other explanatory.
Second pass regression
A cross-sectional regression of portfolio returns on betas. The estimated slope is the measurement of the reward for bearing systematic risk during the period analyzed.
Regression toward the mean
The tendency for subsequent observations of a random variable to be closer to its mean.
Regression equation
An equation that describes the average relationship between a dependent variable and a set of explanatory variables.
Regression analysis
A statistical technique that can be used to estimate relationships between variables.
Linear regression
A statistical technique for fitting a straight line to a set of data points.
