chapter  5
6 Pages

Other Uses of Multilinear Models

WithDavid S. Salsburg

In 1977, the US Supreme Court ruled in favor of the government in an antitrust case against the Container Corporation of America. The government's contention was that Container Corporation and other manufacturers of cardboard containers and corrugated sheets had engaged in a conspiracy in restraint of trade to fix prices for their products. In economic theory, the price of goods in a free market should go up with demand and down with supply. The levels of air pollution in Los Angeles, California, from 1958 to 1975 were examined to determine the effect of new stringent automobile pollution regulations on automobile exhausts. There is one exception to the statement that the variables that are used in multilinear regression can be anything. A dummy variable is equal to one whenever the event being examined has occurred and zero when it has not. Additional examples of multilinear regressions, which used dummy variables, are described from epidemiology, sociology, and environmental studies.