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:
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
LRWD Solutions (XLSX)