1. Welcome to Calculating the line of best fit for data (linear regression) Claude Zanardo.

2.  Definition  Uses  Process for calculating using EXCEL Linear regression

3. Definition Linear regression shows the relationship between two variables, an explanatory variable (X) and a dependent variable (Y). The formula is usually shown as: Y = aX + b

4.  Forecasting Uses

5. We are given the following set of figures for sport car sales and are asked to calculate the least square (regression) equation for the data Example

6. Scatter Diagram

7. Trend Line

8. Process – Step 1

9. . Process – Step 2

10. , Process – Step 3

11. . Process – Step 4 Process 3Process 3

12. . Process – Step 5

13. . Process – Step 6

14. . Process – Step 7

15. Equation is: Y=326.76X + 24282 Forecast for July is: 326.76 x 16 + 24282 = 29,510 Forecast for August is 326.76 x 17 + 24282 = ? Forecast for September is: 326.76 x 18 + 24282 = ? Process – Step 8

16.  Thank you

17. claude.zanardo @tafensw.edu.au Contact Details