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.