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Linear Regression With Excel Brief Tutorial For Forecasting Assignment

This 3-page document provides a brief tutorial for using linear regression analysis in Excel to forecast aviation demand. It explains how to install the Analysis ToolPak add-in, select the regression tool, choose input data ranges for dependent and independent variables, and interpret the regression output statistics. As an example, it shows setting up a regression with passengers per capita (PAX/POP) as the dependent variable and per capita income (PCPI), employment, and average ticket yield as the independent variables. The regression output provides coefficients to estimate the linear relationship between the variables.

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101 views8 pages

Linear Regression With Excel Brief Tutorial For Forecasting Assignment

This 3-page document provides a brief tutorial for using linear regression analysis in Excel to forecast aviation demand. It explains how to install the Analysis ToolPak add-in, select the regression tool, choose input data ranges for dependent and independent variables, and interpret the regression output statistics. As an example, it shows setting up a regression with passengers per capita (PAX/POP) as the dependent variable and per capita income (PCPI), employment, and average ticket yield as the independent variables. The regression output provides coefficients to estimate the linear relationship between the variables.

Uploaded by

chandan
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 with Excel

Brief Tutorial for


Forecasting Assignment

MIT Airport Systems Planning Course


Shiro Yamanaka
Installation

First, please make sure that you have Analysis ToolPak installed. To
do so, go to: Tools... and select: Add-Ins…”
If it is installed already, please skip to Page 4.
MIT Airports Course Regression Tutorial Page 2
Make sure that: Analysis ToolPak” is checked.
MIT Airports Course Regression Tutorial Page 3
Regression

Now we can run the regression. Go to: Tools... and select: Data Analysis

Assumption 5, Q1 is used as an example. The corresponding equation is:


(PAX)/(2*(POP)) = A0 + A1*(PCPI) + A2*(EMP) + A3*(Yield)
MIT Airports Course Regression Tutorial Page 4
From the list, select: Regression...
MIT Airports Course Regression Tutorial Page 5
To specify
the input
range, click
on this button
to go to range
specification
screen. (Next
page)

You are asked to specify the input data.


• “Y Range” refers to Dependent variables
• “X Range” refers to Independent variables

For this analysis, we assume that PAX/(2*POP) is a function of PCPI,


Employment, and Nat’l Avg Yield. So Column F is the Dependent
variable, and Columns B-D are Independent variables.
MIT Airports Course Regression Tutorial Page 6
When you
are done,
click on this
button to go
back to
Regression
main screen.

Here, you can select the data set you want to include as the value of
Dependent or Independent variables. (Have to be done one at a time.)

• For Dependent variables, all data sets must be in one column.


• For Independent variables, data sets can be in multiple columns, and they
will be your “X Variable 1,2, … n” in the output worksheet.

• There must be the same number of data sets for Dependent and
Independent variables. So please construct your table carefully.
MIT Airports Course Regression Tutorial Page 7
When you press: OK, the regression result will be shown on another
worksheet. Statistics useful for our purpose are highlighted.

This example shows, R^2 = 0.923, the coefficients for the 3 independent
variables and the intercept. This turns the original equation into:

(PAX)/(2*(POP)) = -198.50 + 0.061*(PCPI) + 0.039(EMP) + 977.15(YIELD)


MIT Airports Course Regression Tutorial Page 8

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