How to run Regression in Microsoft Excel 2007
Regression is a technique to discover a mathematical relationship between two variables using a set of individual data. In other word, we are trying to find is there any relationship that the changes of one variable is depending on the changes of another variable.
1. Right click on the File Button on the top left conner and choose “Customize Quick Access Toolbar…”
2. Choose Add-Ins from the left menu bar and choose Excel Add-ins from the right hand side
3. Make sure that you tick Anaylsys ToolPak, other add-ins you can also add into your Excel 2007.
4. Once you press OK, you can see “Data Anaylsis” under the Data tab from the Ribbon.
5. Now let’s look at an example of how to use Regression, consider the following data set.
6. Run a regression to test whether there is a relationship between Stock A and Market Index or not. We firstly Select Data Analysis from the Data tab.
7. Here we need to input a few parameters into the regression function in order to run the regression test. Input Y is the dependent variable and input X is the indepent variable, we are going to see is there any relationship there. In other word, If the Market Index changes, Would A change accordingly in the same direction, opposite direction or no obvious trend.
I have included the Title of Column so I ticked Labels and I want the result so as a new worksheet called “A”.
8. The result will be shown as below:
Finally I hope that this tutorial can help you have a brief understanding about regression.
Please let me know if I did anything wrong and it is very much appreciated.
Cliff. 1 April 2009
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