The purpose of this MS Excel-based Linear Regression tutorial is to teach a practitioner for a non-academic organization the basics necessary to form a model, test the model, and refine it. Secondary-school level algebra is required to read a model. Elementary statistics is needed to test a model. We cover the necessary skills step-by-step in the various colored sections.

To expedite the process, certain features which could be taught in an academic setting are omitted (e.g. a calculus and matrix-based proof of how to do linear regression).

By the end of this tutorial, you will be able to:

• Run linear models
• Attempt basic nonlinear models (e.g. power models, binary variables)
• Test the model statistically
• Test the model heuristically
• Apply the practice to business needs

I have written this tutorial on Excel so that you can easily see the data, formulas, charts, and commentaries all on one screen (instead of switching your head from screen to a book all the time).

To use a Linear Regression Package:

Windows/PC: MS Excel has Regression in the Data Analysis Add-On.

Mac: Statplus offers a Regression tool.

R: You can get R for free and use its own regression tool.

Please seek instructions for the respective toolkit to use their Regression application. I will not reinvent the wheel with my own set of instructions.

I have provided quizzes to test your understanding, since we never really know what we “don’t know.” Solutions are provided in a separate file. Good luck! -Gregory Taketa, Data Analyst Extraordinaire

Download:

Linear Regression Without Depression (XLSX)

LRWD Solutions (XLSX)