Excel has a nice linear regression tool as part of the included Analysis ToolPak add-in. It is quick and easy to use even for the layperson.
To make sure you have this add-in enabled:
Go to File > Options > Add-insSelect Manage “Excel Add-ins”Click on “Go”Make sure “Analysis ToolPak” is checked
Let’s say we have the following sample data of gas and crude oil prices.
And we want to analyze the relationship crude oil pricing has to gas pricing. To manually run the regression tool:
Open the “Data” ribbon menuCick “Data Analysis”Select “Regression” in the listClick “Ok” Here are some sample settings for the tool:
This would be the output:
There are many articles out there on how to interpret and use the results of linear regression analysis. You may want to take note of the R Square value, which indicates how closely your values relate.
Now let’s say you wanted to run a lot of linear regressions or wanted to re-run them every time there is a new data point. And you are lazy and d…
To make sure you have this add-in enabled:
Go to File > Options > Add-insSelect Manage “Excel Add-ins”Click on “Go”Make sure “Analysis ToolPak” is checked
Let’s say we have the following sample data of gas and crude oil prices.
And we want to analyze the relationship crude oil pricing has to gas pricing. To manually run the regression tool:
Open the “Data” ribbon menuCick “Data Analysis”Select “Regression” in the listClick “Ok” Here are some sample settings for the tool:
This would be the output:
There are many articles out there on how to interpret and use the results of linear regression analysis. You may want to take note of the R Square value, which indicates how closely your values relate.
Now let’s say you wanted to run a lot of linear regressions or wanted to re-run them every time there is a new data point. And you are lazy and d…