Once you've selected Data Analysis from the Tools menu you'll see a menu of choices such as "Covariance" and "F-Test Two-Sample for Variances". On that menu select Regression. The items are in alphabetical order, so they shouldn't be too hard to find. Once there, you'll see a form that looks like this. Now we need to fill this form in. (The data in the background of this screenshot will differ from your data)
The first field we'll need to fill in is the Input Y Range. This is our PCE in cells C2-C180. You can choose these cells by typing "$C$2:$C$180" into the little white box next to Input Y Range or by clicking on the icon next to that white box then selecting those cells with your mouse.
The second field we'll need to fill in is the Input X Range. Here we will be inputting both of our X variables, DPI and the Prime Rate. Our DPI data is in cells D2-D180 and our prime rate data is in cells E2-E180, so we need the data from the rectangle of cells D2-E180. You can choose these cells by typing "$D$2:$E$180" into the little white box next to Input X Range or by clicking on the icon next to that white box then selecting those cells with your mouse.
Lastly we'll have to name the page our regression results will go on. Make sure you have New Worksheet Ply selected, and in the white field beside it type in a name like "Regression". When that's completed, click on OK.
You should now see a tab on the bottom of your screen called Regression (or whatever you named it) and some regression results. Now you've got all the results you need for analysis, including R Square, coefficients, standard errors, etc.
We were looking to estimate our intercept coefficient b1 and our X coefficients b2, b3. Our intercept coefficient b1 is located in the row named Intercept and in the column named Coefficients. Make sure you jot these figures down, including the number of observations, (or print them out) as you will need them for analysis.
Our intercept coefficient b1 is located in the row named Intercept and in the column named Coefficients. Our first slope coefficient b2 is located in the row named X Variable 1 and in the column named Coefficients. Our second slope coefficient b3 is located in the row named X Variable 2 and in the column named Coefficients The final table generated by your regression should be similar to the one given at the bottom of this article.
Now you've got the regression results you need, you'll need to analyze them for your term paper. We will see how to do that in next week's article. If you have a question you'd like answered please use the feedback form.
Regression Results
