Excel 2010 Statistics 90: Linear Regression #4: Calculate Slope, Y-Intercept, Estimated Equation
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Course updated 2012-06-04 23:07:27
Instructor : ExcelIsFun
Course Duration : 18:37
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Step by step & Descreption :
1. Formula for slope is derived from the expression minSUM(y observed value — y Predicted value)^2 using differential calculus. See text page 667.
2. Calculate Slope and Y-Intercept for Regression Line long hand.
3. Calculate Slope using the SLOPE Function
4. Calculate the y-Intercept using the INTERCEPT Function
5. Slope = Rise Over Run = For every one unit of x, how far does y move?
6. Y-intercept = y value where x = zero. = point at which line crosses axis
7. Use slope and y-intercept to create estimated simple linear regression equation (line or model)
8. From sample data, the slope and y-intercept are point estimates for the population parameters for slope and y-intercept
9. Use estimated simple linear regression line to make predictions
10. Be careful when making predictions with the estimated simple linear regression equation (line or model) when the x values are outside the range of the sample data. Why? Because the data may show a linear relationship over the range of sample data, but may show some other relationship outside that sampled range.
11. See how to use FORECAST function to make predictions.
This is for the Highline Community College Busn 210 Statistical Analysis for Business and Economics taught by Michael Girvin