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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