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September 19th, 2014, 10:27 AM   #1
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Math Focus: Statistics, Econometrics
Applied Statistics and Econometrics

I am doing a research to make a construction cost function of residential building by multiple regressions. I have 18 independent variables in which 5 are categorical (non numeric). I am sure that the relationship between Dependent and independent variables are not linear. How can fit them in multiple regressions?

Q1: What are the test should I perform to confirm the variables are suitable for multiple regression?
Q2: How do I make the equation for variables have non linear relation?
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