From the course: Complete Guide to Excel Statistics with Copilot
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Regression terminology
From the course: Complete Guide to Excel Statistics with Copilot
Regression terminology
- [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 = mx + b. Here's the formula for the regression line, y = mx + b, where b is called the intercept. If x was zero miles, y would be 21600. 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 one. An R-square of one means that our regression line is a perfect fit. An R-square of zero means the line is an extremely poor fit for our data points. So the better the…
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