From the course: Excel Statistics Essential Training: 2

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Regression terminology

Regression terminology - Microsoft Excel Tutorial

From the course: Excel Statistics Essential Training: 2

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Regression terminology

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- [Narrator] Before we perform a regression in Excel, let's get acquainted with some terms you'll be seeing in the regression results Excel will provide you. The first thing we want to understand is the formula of our regression line, y equals mx plus b. Here's the formula for the regression line, y equals mx plus b, where b is called the intercept. If x was zero miles, y would be 21,600. That's where the line intercepts or crosses the y-axis. As for the slope, it tells us how much the value of the car changes. with every mile. We lose 10 cents for every mile the car drives, or the car loses $1,000 in value when the mileage goes up by 10,000 miles. Our next term is R-square, sometimes also called our coefficient of determination. R-square is the measure of how well the line fits the data points. R-square is a number between zero and 1. An R-square of 1 means that our regression line is a perfect fit. An R-square of zero…

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