L32: Multiple linear regression | path diagram & multicollinearity

Welcome to Lecture 32 of the course "Business Analytics" by Prof. Rahul R Marathe. Full Course: https://study.iitm.ac.in/ds/course_pages/BSMS2002.html Video Overview This session dives deeper into multiple linear regression by exploring the effects of correlation between explanatory variables. Using an MBA admissions scenario, we analyze how entrance exam scores and interview performance, when correlated, impact the prediction of CGPA. We introduce and interpret path diagrams to distinguish between direct, indirect, and total effects. This lecture also touches on multicollinearity and introduces the Variance Inflation Factor (VIF) as a diagnostic tool. About IIT Madras' online Bachelor of Science programme IIT Madras offers four-year BS programmes that aim to provide quality education to all, irrespective of age, educational background, or location. The BS programme has multiple levels, which provide flexibility to students to exit at any of these levels. Depending on the courses completed and credits earned, the learner can receive a Foundation Certificate from IITM CODE (Centre for Outreach and Digital Education), Diploma(s) from IIT Madras, or BSc/BS Degrees from IIT Madras. For more details, Visit: https://www.iitm.ac.in/academics/study-at-iitm/non-campus-bs-programmes #MultipleLinearRegression #RegressionAnalysis #DataAnalysis #Correlation #PathDiagram #DirectEffect #IndirectEffect #TotalEffect #CGPA #MBAAdmissions #ExplanatoryVariables #ResponseVariable #Multicollinearity #VarianceInflationFactor #VIF #PredictiveModeling #StatisticalLearning #EducationalAnalytics #LinearModeling #RegressionInterpretation