There is also an equation I was looking for (if the Display Equation on Chart was checked). Now there is a line in chart, presenting the dependency. Select the proper trendline shape on the right pane and check Display Equation on Chart. Right click on some of the point and then "Add trendline". In a chart you can see the relation - if the points make some line. You can select all the table with headers and insert scatter plot. Possibly the most understandable way how to find parameters is their visualization. Which means select two cells, type =LINEST(C2:C14 B2:B14) and press Ctrl + Shift + Enter. LINEST works similarly to INTERCEPT and SLOPE, but it has to be used as a matrix formula. Calculation with function INTERCPET, SLOPE and FORECAST. There are multiple ways how to find "a" and "b". In another words the dependent variable is on vertical axis Y axis. For now it is the ice cream sales, because it depends on temperature. Y is dependent variable - which means variable dependent on the other one. In another words the independent variable is on horizontal X axis. In my case the independent variable is a temperature - because the sales of ice cream depend on temperature. X is an independent variable - which means variable, on which the second one is dependent. In this case - number of ice creams sold = a * temperature + b. The linear regression is described by equation y = a * x + b. We will describe the equation of regression (find a, b parameters) and estimate, how many ice cream portions is going to be sold tomorrow, when the temperature will be 17☌.įor now we will not consider any factors except of ice cream portions and temperature. In this example we will deal with variables "number of ice cream portions sold in one day" (independent variable) and "average day temperature" (dependent variable). If you are interested in nonlinear regression, click here.
In another words, when this relation is visualized in chart, it makes straight line. This relation can be described by an equation y = a*x+b. Linear regression is relation of two variables (=columns of data), when one depends on the second.
This article deals with multiple way how to work with linear regression in Excel.
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