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Linear Regression Using Excel

This document provides a tutorial on performing linear regression in Microsoft Excel 2007. It explains how to install the Analysis ToolPak add-in, use the data analysis tool to select the input and output ranges for the regression, and interpret the output coefficients and regression statistics. Specifically, it finds the linear equation that best fits a sample data set by calculating the intercept (a), slope (b), and adjusted R-squared value, which measures the goodness of fit of the model.

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141 views

Linear Regression Using Excel

This document provides a tutorial on performing linear regression in Microsoft Excel 2007. It explains how to install the Analysis ToolPak add-in, use the data analysis tool to select the input and output ranges for the regression, and interpret the output coefficients and regression statistics. Specifically, it finds the linear equation that best fits a sample data set by calculating the intercept (a), slope (b), and adjusted R-squared value, which measures the goodness of fit of the model.

Uploaded by

darkniight
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Linear Regression using Excel

Subject: Linear Regression using Excel Application: Microsoft Excel 2007 Task: I want to find a linear equation that best describes a data set Tutorial Date: 17th February, 2010 by Nathan Smith

Install the Analysis ToolPak

1. In the Microsoft Office button, go to excel options to click Add-ins 2. In the Add-Ins box, select Analysis ToolPak and click Go...

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Install the Analysis ToolPak (continue)

3. In the Add-Ins available box, check the Analysis ToolPak and then OK 4. If Analysis ToolPak is not listed in the Add-Ins available box, click Browse to locate it.

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Linear Regression using the Data Analysis Add-In

Suppose we want to determine a whether Y is a function of X (Y)i = a + b(X)i + (error)i where: (Y)i = value of Y for observation i a = mean value of Y when X is zero (inercept coefficient) b = average change in Y given a one unit change in X, i,e (slope of X) (X)i = value of X for observation i 1. In the data analysis tool select the regression and then click Ok. .

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Select the Input Data Set for Y and X values

2. After clicking the regression, a regression box appears. 3. Select the Inputs for Y range and X range. 4. Select the place where you want your output 5. Check the Labels and then click Ok

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Output

The output is given in the coefficients column in the last set of output 1. a = 1.329 (Intercept Coefficient) 2. b = 0.801 (Coefficient of X i.e. slope) So our regression equation is Y = 1.329 + 0.801(X) Also in the regression statistics output gives the goodness of fit measure 3. Adjusted R square = 0.3984 which measures the fit This means 39.84% of Y is determined by X

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