Regression Analysis Formula Excel Template

Prepared by Dheeraj Vaidya, CFA, FRM

dheeraj@wallstreetmojo.com

visit - www.wallstreetmojo.com
Let us try and understand the concept of regression analysis with the help of an example. Let us try to find out what is
the relation between the distance covered by the truck driver and the age of the truck driver. Someone actually does
regression equation to validate whether what he thinks of the relationship between two variables, is also validated
by the regression equation.

Age Distance
18 510
20 590
22 560
23 510
23 460 SUMMARY OUTPUT
25 490
2 560 Regression Statistics
28 510 Multiple R 0.8179015865
29 460 R Square 0.6689630053
32 410 Adjusted R Square 0.6505720611
37 420 Standard Error 42.681553076
41 460 Observations 20
46 450
49 380 ANOVA
53 460 df SS MS
55 420 Regression 1 66264.13048594 66264.13049
63 350 Residual 18 32790.86951406 1821.714973
65 420 Total 19 99055
66 300
67 410 Coefficients Standard Error t Stat
Intercept 575.75420638 21.95588902737 26.22322447
X Variable 1 -3.121837863 0.517620306793 -6.03113483
y to find out what is
eone actually does
is also validated

F Significance F
36.3746 1.057443558E-05

P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%

9E-16 529.6265952065 621.8818175 529.62659521 621.88181755
1E-05 -4.209317774295 -2.03435795 -4.209317774 -2.034357952
Let us try and understand regression analysis with the help of another example. Let us try to find out what is the relation be
of the students of a class and the GPA grade of those students. Someone actually does regression equation to validate whet
thinks of the relationship between two variables, is also validated by the regression equation.

Height GPA
66 2.9
57 3.16
64.5 3.62 SUMMARY OUTPUT
62 2
69.5 3.45 Regression Statistics
65 2.8 Multiple R 0.0260397108
63 3.63 R Square 0.0006780665
68 2.81 Adjusted R Square -0.04928803
59.5 3.33 Standard Error 0.6082522365
64 2.75 Observations 22
69 3.86
70 1.5 ANOVA
66 2.49 df SS MS
73 3.1 Regression 1 0.005020700527 0.005020701
69 2.7 Residual 20 7.39941566311 0.369970783
61 1.94 Total 21 7.404436363636
68 2.13
72 2.84 Coefficients Standard Error t Stat
72 2.85 Intercept 2.6522637195 1.982598765604 1.337771296
73.5 3.33 X Variable 1 0.0034679878 0.029770019377 0.116492628
63 3
67 3.23
 out what is the relation between the height
n equation to validate whether what he

F Significance F
0.01357053247 0.90842395414

P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%

0.19598512423 -1.48336483613 6.78789227516 -1.48336483613 6.787892275
0.90842395414 -0.05863118444 0.06556716005 -0.05863118444 0.06556716