Performing Linear Regression in Excel
The simplest form of regression analysis is linear regression.
Simple linear regression looks at the relationship between only two variables.
initiate the program’sFilemenu and chooseOptions.
SelectAdd-insin the left navigation menu.
Then, make sureExcel Add-insis selected in theManagefield.
In the Add-ins pop-up window.
EnableAnalysis ToolPakby clicking the box in front of it to add a checkmark, then selectOK.
Now that Analysis ToolPak is enabled, you’re ready to start doing regression analysis in Excel.
Here’s what it looks like to perform a linear regression analysis:
Select theDatamenu.
Then, in theAnalysisgroup, selectData Analysis.
ChooseRegressionfrom the list and then selectOK.
TheInput Y Rangeis the cell range that contains the dependent variable.
In this example, that’s the weight.
TheInput X Rangecontains the independent variable; the calorie column, in this example.
To drop your data range, go for the first box and then highlight your cells.
Do the same for the second box, or pop in these cell ranges manually.
SelectLabelsfor the header cells, and then selectNew Worksheet Plyto send the results to a newworksheet.
SelectOKto have Excel spin up the analysis and send the results into a new sheet.
Examine the new worksheet.
As you could see, in this example, calories have a strong correlation to total weight.
The analysis output has several values that you’re gonna wanna understand to interpret the results.
However the Multiple R and R Square are the two most important.
What Is Regression Analysis?
Regression is a statistical modeling approach that analysts use to determine relationships between multiple variables.
This may sound like advanced statistics, but Excel makes this complex analysis easy to perform for anyone.
