1. A method for inter-layer prediction using a computer, the method comprising: accessing a first image ( 145 ) and a second image ( 125 ), each of the images comprising one or more color channels, wherein both images represent the same scene but at a different dynamic range and the second image ( 125 ) has a higher dynamic range than the first image ( 145 ); for at least one color channel of the first image: selecting a multivariate locally weighted (MLW) prediction model using two or more bands; for each of the two or more bands of the selected MLW model: computing prediction weights for the band; solving for prediction parameters for the band and computing a band-based predicted output based on the prediction weights of the band, the first image, the second image, and the MLW prediction model ( 520 ); and generating a final predicted output image based on the prediction weights of all the bands and the band-based predicted outputs ( 530 , 540 ).