{"id":16145,"date":"2023-08-01T12:44:22","date_gmt":"2023-08-01T12:44:22","guid":{"rendered":"https:\/\/officetuts.net\/excel\/?p=16145"},"modified":"2024-03-26T12:56:35","modified_gmt":"2024-03-26T12:56:35","slug":"excel-data-analysis-with-linear-regression","status":"publish","type":"post","link":"https:\/\/officetuts.net\/excel\/examples\/excel-data-analysis-with-linear-regression\/","title":{"rendered":"Data Analysis with Linear Regression in Excel"},"content":{"rendered":"\n<div class=\"wp-block-file\"><a id=\"wp-block-file--media-95b5206e-915a-496c-aff3-46c4872ca346\" href=\"https:\/\/officetuts.net\/excel\/wp-content\/uploads\/sites\/2\/2023\/08\/Excel-Data-Analysis-with-Linear-Regression.xlsx\">Excel-Data-Analysis-with-Linear-Regression<\/a><a href=\"https:\/\/officetuts.net\/excel\/wp-content\/uploads\/sites\/2\/2023\/08\/Excel-Data-Analysis-with-Linear-Regression.xlsx\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-95b5206e-915a-496c-aff3-46c4872ca346\">Download File<\/a><\/div>\n\n\n\n<p>There are a lot of things that Excel is an amazing tool to use for. One of these things is <strong>data analysis, and as a part of it, linear regression<\/strong>. There are many definitions of linear regression. This is a statistical method that is used to model the relationship between <strong>one dependent variable (Y)<\/strong> and <strong>one or more independent ones (X)<\/strong>.<\/p>\n\n\n\n<p>Excel has a great built-in tool for linear regression, which is called <strong>\u201cRegression\u201d<\/strong>. In the example below, we will show how to do it.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Preparing Data Analysis<\/h2>\n\n\n\n<p>Several steps need to be taken to conduct a linear regression analysis in Excel:<\/p>\n\n\n\n<ol>\n<li><strong>Prepare the Data<\/strong><\/li>\n<\/ol>\n\n\n\n<p>First thing first, we need to have our data. This means that we have a <strong>dependent variable (Y) and one or more independent variables (X) <\/strong>in our columns. Every row that we have should represent an individual data point.<\/p>\n\n\n\n<ol start=\"2\">\n<li><strong>Enable Data Analysis ToolPak (if not already enabled)<\/strong><\/li>\n<\/ol>\n\n\n\n<p>To make sure that you can do the proper <strong>Data Analysis<\/strong>, you need to enable <strong>Data Analysis ToolPak<\/strong>. To do this, you need to go to <strong>File &gt;&gt; Options &gt;&gt; Add-ins<\/strong>. There, in the <strong>Add-ins window<\/strong>, we will select <strong>Excel Add-ins and click Go:<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1030\" height=\"799\" src=\"https:\/\/officetuts.net\/excel\/wp-content\/uploads\/sites\/2\/2023\/08\/word-image-16145-1.png\" alt=\"\" class=\"wp-image-16146\" srcset=\"https:\/\/officetuts.net\/excel\/wp-content\/uploads\/sites\/2\/2023\/08\/word-image-16145-1.png 1030w, https:\/\/officetuts.net\/excel\/wp-content\/uploads\/sites\/2\/2023\/08\/word-image-16145-1-300x233.png 300w, https:\/\/officetuts.net\/excel\/wp-content\/uploads\/sites\/2\/2023\/08\/word-image-16145-1-1024x794.png 1024w, https:\/\/officetuts.net\/excel\/wp-content\/uploads\/sites\/2\/2023\/08\/word-image-16145-1-768x596.png 768w\" sizes=\"(max-width: 1030px) 100vw, 1030px\" \/><\/figure>\n\n\n\n<p>Once we do, the <strong>Add-ins window<\/strong> will appear. There, we will click on the <strong>Analysis ToolPak box<\/strong>, and <strong>click OK:<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"409\" height=\"499\" src=\"https:\/\/officetuts.net\/excel\/wp-content\/uploads\/sites\/2\/2023\/08\/word-image-16145-2.png\" alt=\"\" class=\"wp-image-16147\" srcset=\"https:\/\/officetuts.net\/excel\/wp-content\/uploads\/sites\/2\/2023\/08\/word-image-16145-2.png 409w, https:\/\/officetuts.net\/excel\/wp-content\/uploads\/sites\/2\/2023\/08\/word-image-16145-2-246x300.png 246w\" sizes=\"(max-width: 409px) 100vw, 409px\" \/><\/figure>\n\n\n\n<ol start=\"3\">\n<li><strong>Access Data Analysis ToolPak<\/strong><\/li>\n<\/ol>\n\n\n\n<p>Once we have the <strong>TookPak enabled<\/strong>, we should be able to see the <strong>Data Analysis option<\/strong> located in the <strong>Data tab on the Excel ribbon<\/strong>:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1377\" height=\"160\" src=\"https:\/\/officetuts.net\/excel\/wp-content\/uploads\/sites\/2\/2023\/08\/word-image-16145-3.png\" alt=\"\" class=\"wp-image-16148\" srcset=\"https:\/\/officetuts.net\/excel\/wp-content\/uploads\/sites\/2\/2023\/08\/word-image-16145-3.png 1377w, https:\/\/officetuts.net\/excel\/wp-content\/uploads\/sites\/2\/2023\/08\/word-image-16145-3-300x35.png 300w, https:\/\/officetuts.net\/excel\/wp-content\/uploads\/sites\/2\/2023\/08\/word-image-16145-3-1024x119.png 1024w, https:\/\/officetuts.net\/excel\/wp-content\/uploads\/sites\/2\/2023\/08\/word-image-16145-3-768x89.png 768w\" sizes=\"(max-width: 1377px) 100vw, 1377px\" \/><\/figure>\n\n\n\n<ol start=\"4\">\n<li><strong>Perform Regression analysis and interpret the results<\/strong><\/li>\n<\/ol>\n\n\n\n<p>For the final part, you do the regression and then see what you got.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Excel Data Analysis with Linear Regression in Example<\/h2>\n\n\n\n<p>For our purposes, we will create the table with <strong>hours spent on learning and student\u2019s exam scores<\/strong>:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"223\" height=\"203\" src=\"https:\/\/officetuts.net\/excel\/wp-content\/uploads\/sites\/2\/2023\/08\/word-image-16145-4.png\" alt=\"\" class=\"wp-image-16149\"\/><\/figure>\n\n\n\n<p>Since we all did steps 1 to 3, we will go to the <strong>Data tab, and then click on the Data Analysis<\/strong>. Once we do, we will have a new window on which we will choose <strong>Regression as an option<\/strong>:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"591\" height=\"260\" src=\"https:\/\/officetuts.net\/excel\/wp-content\/uploads\/sites\/2\/2023\/08\/word-image-16145-5.png\" alt=\"\" class=\"wp-image-16150\" srcset=\"https:\/\/officetuts.net\/excel\/wp-content\/uploads\/sites\/2\/2023\/08\/word-image-16145-5.png 591w, https:\/\/officetuts.net\/excel\/wp-content\/uploads\/sites\/2\/2023\/08\/word-image-16145-5-300x132.png 300w\" sizes=\"(max-width: 591px) 100vw, 591px\" \/><\/figure>\n\n\n\n<p>We will <strong>click OK<\/strong> and will be presented with a <strong>Regression window<\/strong>. There, we will click on the <strong>Input Y_Range<\/strong> and then choose range <strong>B2:B7 (exam scores)<\/strong> as our <strong>Y Range<\/strong>, and on <strong>Input X_Range<\/strong> choose<strong> range A2:A7 (study hours) as our X range<\/strong>.<\/p>\n\n\n\n<p>We will also click on the <strong>Labels checkbox as we have headers<\/strong>:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"619\" height=\"488\" src=\"https:\/\/officetuts.net\/excel\/wp-content\/uploads\/sites\/2\/2023\/08\/word-image-16145-6.png\" alt=\"\" class=\"wp-image-16151\" srcset=\"https:\/\/officetuts.net\/excel\/wp-content\/uploads\/sites\/2\/2023\/08\/word-image-16145-6.png 619w, https:\/\/officetuts.net\/excel\/wp-content\/uploads\/sites\/2\/2023\/08\/word-image-16145-6-300x237.png 300w\" sizes=\"(max-width: 619px) 100vw, 619px\" \/><\/figure>\n\n\n\n<p>When we click OK, Excel will <strong>create another sheet with the regression analysis done<\/strong>:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1062\" height=\"470\" src=\"https:\/\/officetuts.net\/excel\/wp-content\/uploads\/sites\/2\/2023\/08\/word-image-16145-7.png\" alt=\"\" class=\"wp-image-16152\" srcset=\"https:\/\/officetuts.net\/excel\/wp-content\/uploads\/sites\/2\/2023\/08\/word-image-16145-7.png 1062w, https:\/\/officetuts.net\/excel\/wp-content\/uploads\/sites\/2\/2023\/08\/word-image-16145-7-300x133.png 300w, https:\/\/officetuts.net\/excel\/wp-content\/uploads\/sites\/2\/2023\/08\/word-image-16145-7-1024x453.png 1024w, https:\/\/officetuts.net\/excel\/wp-content\/uploads\/sites\/2\/2023\/08\/word-image-16145-7-768x340.png 768w\" sizes=\"(max-width: 1062px) 100vw, 1062px\" \/><\/figure>\n\n\n\n<p>We will have information such as <strong>coefficients, standard errors, t-values, p-values, and the R-squared value<\/strong>.<\/p>\n\n\n\n<p>In our example, we wanted to see if there was any <strong>correlation between the hours that were put into work, and the scores that students achieved<\/strong>.<\/p>\n\n\n\n<p>The <strong>coefficient<\/strong> represents the change in the exam score for every additional hour that students put to work. The <strong>p-value<\/strong> is associated with the coefficient and will tell us if the relationship is statistically significant.<\/p>\n\n\n\n<p><strong>R-squared value<\/strong> can give us a good idea about the fit of the model and the data. A value that is close to 1 indicated a good fit, and a value that is close to 0 indicates a poor fit.<\/p>\n\n\n\n<p>In our example, we have a <strong>coefficient of 5<\/strong>, which means that, on average, for each additional study hour, the <strong>exam score increases by 5 points<\/strong>. Our <strong>p-value is smaller than 0.05<\/strong>, meaning that the <strong>relationship between the score that students can achieve, and study hours is significant<\/strong>.<\/p>\n\n\n\n<p>This example is fairly simple, and the correlation can be seen by looking at the original table. In real-world scenarios, datasets would be larger, and the models would be more complex. However, the steps that were described above can be applied to these as well.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are a lot of things that Excel is an amazing tool to use for. One of these things is data analysis, and&#8230;<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[170,190],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Data Analysis with Linear Regression in Excel<\/title>\n<meta name=\"description\" content=\"Learn how to perform data analysis and linear regression in Excel. 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