Prediction Analysis: Multiple Linear Regression Model For Aave, Avax And Leo Price

Previously carried out analysis uses a linear model but in current analysis, I shall be considering multiple variables such as price of aave, avax and leo.

I shall consider this into brief subheadings.

What is multiple linear regression

Requirement for multiple linear regression

Predictive analysis of Aave Token, Avax coin And Leo token

Conclusion

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What is multiple linear regression
Multiple linear regression is the use of two or more variables in prediction analysis. It is an extended form of the linear regression model.

Requirement for multiple linear regression

The following conditions are expected to be satisfied before carrying out multiple linear regression test.

Model summary
The summary of MLR could be seen below, the entry variables are price of aave and avax to predict price of leo. The model explains 76% of leo price variance.

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Correlation
Since I am using more than one two variables. It’s essential to carryout partial correlation in order to view the level of relationship the dependent variable has on independent variables.

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It can be seen that when the price of leo is in a bull that of aave and avax will experience same and vice versa. With a coefficient of (r = 0.670), shows a strong positive correlation between aave and avax.

Anova
In order to support correlation analysis, multiple linear regression presents the summary of relationship between all variables. It can be seen that there is a relationship between variables in consideration. Anova has a hypothesis that there is no relationship between the assets in consideration but the hypothesis can be neglected.

Normality
Normality condition is essential when there are few sample sizes. It is robust with increase in sample size. The sample size estimates 243 variables and above. The result of normality test can be seen below.

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Predictive analysis of Aave Token, Avax coin And Leo token

The model to estimate the price of Price of leo when considering Aave and Avax price.

Using the B coefficients below

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Leo price = 0.007 + 0.001 * price of aave + 0.002 * price of avax

The price of aave has a zero influence on the price, I shall attempt to carryout a linear model between price of leo and aave inorder to get its coefficient.

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I shall consider for when the price of avax is $18.85 and aave is $82.49 on 1st of September.

Leo price = 0.007 + 0.001* 82.49 + 0.002 * 18.85

Leo price = 0.007 + 0.08 + 0.03

I am using single digit estimation so as not to get extreme values because the SPSS software rounded off the prices of all tokens

Leo price = 0.007 + 0.08 + 0.03

From the equation above, I shall attempt to deduct 0.03 from our result with reasons been that we considered only a linear between aave and leo alone then we have to deduct for avax.

Leo price = 0.007 + 0.05 = $0.057
This is approximately $0.06 as seen on the data view, the price of leo was $ 0.0699. This shows a difference of $0.0099.

Conclusion
The price of leofinance, avax and aave was analyzed for prediction in this article.

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Data view mode

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Variable view mode

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Maximum and minimum values

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