Multiple regression analyzes the relationship between multiple independent variables and one dependent variable. The dependent variable is modeled as a function of the independent variables with corresponding coefficients. It is commonly used in econometrics and financial analysis to model the linear relationship between explanatory and response variables. The assumptions are that there is a linear relationship between dependent and independent variables and that the independent variables are not highly correlated with each other. Model accuracy is assessed using R-squared and residual standard error, with R-squared representing the proportion of variance in the dependent variable that can be predicted from the independent variables.