Regression Analysis Simplified with Excel




Regression analysis

 Regression Analysis a statistical tool for the investigation of relationships between variables. Usually, the investigator seeks to ascertain the causal effect of one variable upon another , the effect of a price increase upon demand, for example, or the effect of changes in the money supply upon the inflation rate.

 Regression Analysis with Excel

 In this example, Sales Qty is the predictable variable and Price and Advertising are the unpredictable variables. Using Regression Analysis we will find out the relationship between the variables.The big question is: is there a relation between Sales Qty (Output) and Price and Advertising (Input). In other words: can we predict Quantity Sold if we know Price and Advertising?
Click on Data Analysis from the Data Menu from the ribbon as follows :

 Click on Regression as follows :

Select the settings as shown below. The Input Y Range is the predicable variable and the Input X is the unpredictable variables data range.


 :
Click OK to generate the analysis. With the above inputs following results generated in Excel. R Square equals 0.557.  56% of the variation in Sales Quantity is explained by the independent variables Price and Advertising. 


Click here for the downloadable excel file of above example.

Check out my other post on Montecarlo analysis simplified in Excel 

Comments

Post a Comment

Popular posts from this blog

Application Lifecycle Management - SDLC with ALM

Image
SDLC with ALM  Development is certainly the fundamental part of application lifecycle management. Once the business case is approved, the software development lifecycle begins. If we expanded the SDLC parts of the Development line shown in the figure below, a modern process would probably show software development as a series of iterations. Each iteration would contain some requirements definition, some design, some development, and some testing. This iterative style of development isn’t always appropriate—some projects are still better done using more traditional methods—but it’s becoming the norm in many areas. Once the SDLC process for version 1 of the application is complete, the application is deployed. For most applications, however, deployment doesn’t mark the end of development. Instead, the application needs periodic updates, as shown in the figure, and perhaps one or more full SDLC efforts to create new versions, as in this example. For some applications, the...
Read more

Sharepoint 2010 : Crawl issues - Search refiners

Image
For troubleshooting managed property for search refiners : Type the <Managedpropertyname>=<the value> in the search box. If the search results return the searchresults filtered by the managed property, the managed property is available for search refiners. Managed properties also can be queried with the < (lesser than) , > (greater than) symbols. Happy Sharepointing!
Read more

What's new in Sharepoint 2016

Image
Microsoft confirmed that SharePoint Server 2016 will become generally available in Q2 2016, with a public beta planned for Q4 2015. What to expect in 2016? On-premises support will be around for the foreseeable  future. Continued support on combination of on-premises, cloud and hybrid deployments for many years to come. Microsoft is moving more to a cloud-based identification model with SAML and OAuth Nondefault ports can be used for connection encryption, rather than just using Port 25 Site creation is no longer a "heavy operation" but now will be "small and fast" Project Server will be integrated into SharePoint content databases (although you don't get it for free) Microsoft will make "durable links" for finding files so that it won't matter if the file name gets changed or if the file gets moved Microsoft is adding an ODF file saving capability Improved user experiences Cloud-inspired infrastructure Compliance and reporting...
Read more