Microsoft Office Tutorials and References
In Depth Information
Multi-Regression
FIGURE 14.2 Data with a Second Parameter: Number of Bathrooms
Where:
a
Y-Intercept
b 1 ¼
¼
the coefficient for Apartment Size
b 2 ¼
the coefficient for number of Bathrooms
Instead of using the chart, as we did in the previous example, this time we consult
the Analysis ToolPak. You may follow the procedure to activate the Analysis
ToolPak described in Chapter 13.
Once you have the Add-in installed, go to the Data Ribbon and click Data
Analysis, you can now select Regression on the Data Analysis menu. See Figure 14.3.
Once you click Regression, the Regression menu will be activated. See Figure
14.4. For the Input Y Range cell, make sure you select all the prices (dependent
variable). These values are in the range A1:A1001. Remember, it is only possible to
have one dependent variable. The Independent Variables are the X values, found in
the range B1:C1001. All the Independent Variables values have to be adjacent to
each other on the spreadsheet (in our case column B is adjacent to column C). In
this example we have two Independent Variables: Size and number of Bathrooms.
For the Input X Range cell in the menu, make sure you select all the sizes and
number of bathrooms. Check (
) Labels following these two cells to indicate that
the first row of your data contains text headers. After you click OK, the regression
will be calculated.
There are a few more options on the Regression menu, which we did not select.
We will explore one of these options later in the chapter. Once you calculate the
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