Linear Regression with Excel Data Analysis Toolpak

For versions of Excel: Excel for Office 365, Excel for Office 365 for Mac, Excel 2016, Excel 2013, Excel 2010, Excel 2007, Excel 2016 for Mac, Excel for Mac 2011,

This video demonstrates building a simple linear regression model with Excel and explains how to interpet key outputs that Excel generates. Excel comes with a statistical analysis toolkit that can be found under the data tab. Once Data Analysis has been "turned on", you will find the data analysis group there. Data Analysis Toolpak is an Excel add-in with many statistical tools. The video below demonstrates one of the tools in the Data Analysis Toolpak, common statistical tools - linear regression.

What is Linear Regression?

Briefly, linear regression is the statistical process of constructing a model to explain the degree to which one variable's change (x) can be used to explain another variable's change (y). If the model fits the data well it can be used to predict values of y that can be expected based on values of x.

The variable being used to explain another variable is known as the independent or explanatory variable. While the variable being explain is called the dependent or response variable. Models built using one explanatory variable are called simple linear regression models. However most models will try multiple variables to better explain the response variable. Models using more than one explanatory variable are called multiple regression models.