Microsoft Office Tutorials and References

In Depth Information

**Chapter 12: Statistical Regression**

FIGURE 12.1
Creating the XY Scatter Chart

FIGURE 12.2
Displaying the Regression Line on a Chart

The slope is 4.87. In the time range from 3 to 12, sales went up on average by

4.87 units every month.

R
2
is 0.9945. R
2
is the coefficient of determination. The values of R
2
always

range between 0 and 1.

R
2
is used in statistical models of forecasting/regressions to measure how accurate

the model is to predict the future values, using the existing regression formula applied

to the current data. In the above example, R
2
is close to 1, which means that the

regression line is excellent. If it is close to 0 you cannot use the data for forecasting.