Chartered Market Technician (CMT) Level 2 Practice Test 2025 - Free CMT Level 2 Practice Questions and Study Guide

The general form of the multiple regression equation is represented as y = a + b1x1 + b2x2 + ... + bnxn. This equation summarizes the nature of the relationship between a dependent variable (y) and multiple independent variables (x1, x2, ..., xn). In this structure, "a" represents the intercept, which is the expected value of y when all independent variables are zero. The coefficients "b1," "b2," ..., "bn" indicate the change in the dependent variable (y) for a one-unit change in the respective independent variables while holding all other variables constant. This formulation allows for a comprehensive analysis of how several factors impact the outcome, making it a fundamental concept in statistical modeling and analysis.

Other options presented do not capture the complete structure required for multiple regression. For instance, the equation that does not include an intercept or assumes a direct linear relationship with only a single independent variable fails to reflect the complexity and multiple dimensions typically encountered in multiple regression analysis.