Which means these are the variables using which response variable can be predicted.

But why should you go for it when excel does calculations for you.

If you plot this information through a chart, lets see what it gives.

Dont get much involved in graph now, we are anyhow going to dig it deep in the second portion of this article.

Which represents that when X changes, there is a change in Y by a units.

Occurs because the predicted value of Y will never be exactly the same to the actual value for given X.

As there are some softwares which do the calculation of this error term in the backend for you.

In this case, check Residuals checkbox so that we can see the dispersion between predicted and actual values.

However, interpreting this output and make valuable insights from it is a tricky task.

In this case, R Square value is 0.9547.

Or in another language, information about Y variable is explained 95.47 by X variable.

It gives values of coefficients which can be used to build the model for future predictions.

To add this line, right click on any of the data points on the graph and select Add Trendline option.

It gives you a better understanding of the spread of the actual Y values and estimated X values.

These features can be taken into consideration for Multiple Linear Regression.

Excel Analysis Toolpak How To Do Regression

Here we discuss how to do Regression Analysis in Excel along with excel examples and downloadable excel template.

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