Interpreting the Regression Output from Excel

To use the regression facility in Excel, first be sure you have your data entered in columns. Click on
Tools, then on Data Analysis. From the list of options, choose Regression. A dialog box will open which
allows you to mark or otherwise designate the range for the x variable and the range for the y variable. You
should also mark the data label at the top of each column and place a check mark in the Labels box in the
dialog box. If you do not designate an area on the open worksheet to place the output, Excel will by default
create a new worksheet to receive the output. Generally speaking, its best to click on the radio button for
output range and choose a space next to your data to receive the output. Your output will look like this:

SUMMARY
OUTPUT In simple regression, this number is the absolute
value of Pearsons coefficient of correlation. Its
Regression Statistics sign will be the same as that of the b1 coefficient.
Multiple R 0.795941592
R Square 0.633523017 This number is the coefficient of determination
Adjusted R Square 0.560227621 r2. It expresses the proportion of the variation in
Standard Error 53.06706929 y which is explained by variation in x.
Observations 7
ANOVA is not important in simple regression since it duplicates other tests.
ANOVA
Significance
df SS MS F F
Regression 1 24340.85936 24340.859 8.6434217 0.032257789
Residual 5 14080.56921 2816.1138
Total 6 38421.42857

Standard
Coefficients Error t Stat P-value Lower 95% Upper 95%
Intercept 127.8233737 37.42460754 3.41549 0.0189304 31.62035737 224.02639
Distance 80.27609682 27.30507654 2.9399697 0.0322578 10.08616307 150.4660306

This is the
label attached This is the
to the x slope of the This is the
variable. regression standard This is the p-value of the
line or b1. error of the the t statistic hypothesis test H0: 1 = 0. To
coefficient
is b1 sb1. reject it is to conclude that there is
which weve
It has n-2 a significant relationship between x
called sb1
degrees of and y. Note that it is also the p-
freedom value of the test for the correlation
coefficient H0: = 0.

Continued next page

 SUMMARY
OUTPUT

Regression Statistics
Multiple R 0.795941592 This is the standard error of the estimate,
R Square 0.633523017 which weve designated sy.x.
Adjusted R Square 0.560227621
Standard Error 53.06706929
Observations 7 The number of observations or n.

ANOVA
Significance
df SS MS F F
Regression 1 24340.85936 24340.859 8.6434217 0.032257789
Residual 5 14080.56921 2816.1138
Total 6 38421.42857

Standard
Coefficients Error t Stat P-value Lower 95% Upper 95%
Intercept 127.8233737 37.42460754 3.41549 0.0189304 31.62035737 224.02639
Distance 80.27609682 27.30507654 2.9399697 0.0322578 10.08616307 150.4660306

Weve struck through the line of information These numbers are the limits of a confidence
for Intercept to emphasize that these interval for the slope of the regression line: we
numbers are rarely of interest in themselves.
are 95% confidenct that 10.09 1 150.47.
Although the intercept is used as b0 in the
regression equation and in making
predictions, we do not usually test H0: 0 =
0.