Predictive Analytics: Microsoft Excel, 2nd Edition

2 Linear Regression

IN THIS CHAPTER

Correlation and Regression

Correlation Is Not Causation

Simple Regression

Multiple Regression

Assumptions Made in Regression Analysis

Using Excel’s Regression Tool

When two variables are quantitatively related to one another, they are said to be correlated. Weight and height are correlated: Taller people tend to weigh more. Personal income and tax liabilities are correlated: People who make more money tend to pay more income taxes. Unit price and units sold are correlated: Other things being equal, the more that a product costs, the fewer units that you tend to sell.

Correlation and Regression

There are some important points hidden in the prior paragraph. One of them is the word tend. Most interesting pairs ...