Interpreting the Regression Output from Excel

To use the regression facility in Excel, first be sure you have your data entered in columns. Click on
Tools, then on Data Analysis. From the list of options, choose Regression. A dialog box will open which
allows you to mark or otherwise designate the range for the x variable and the range for the y variable. You
should also mark the data label at the top of each column and place a check mark in the Labels box in the
dialog box. If you do not designate an area on the open worksheet to place the output, Excel will by default
create a new worksheet to receive the output. Generally speaking, its best to click on the radio button for
output range and choose a space next to your data to receive the output. Your output will look like this:
SUMMARY
OUTPUT
Regression Statistics
Multiple R
0.795941592
R Square
0.633523017
Adjusted R Square
0.560227621
Standard Error
53.06706929
Observations
7
ANOVA

Intercept
Distance
This is the
label attached
to the x
variable.

This is the
slope of the
regression
line or b1.

Continued next page

This number is the coefficient of determination

r2. It expresses the proportion of the variation in
y which is explained by variation in x.

ANOVA is not important in simple regression since it duplicates other tests.

df

Regression
Residual
Total

In simple regression, this number is the absolute

value of Pearsons coefficient of correlation. Its
sign will be the same as that of the b1 coefficient.

1
5
6

SS
24340.85936
14080.56921
38421.42857

Coefficients
127.8233737
80.27609682

Standard
Error
37.42460754
27.30507654

This is the
standard
error of the
coefficient
which weve
called sb1

MS
24340.859
2816.1138

F
8.6434217

Significance
F
0.032257789

t Stat
3.41549
2.9399697

P-value
0.0189304
0.0322578

Lower 95%
31.62035737
10.08616307

the t statistic
is b1 sb1.
It has n-2
degrees of
freedom

Upper 95%
224.02639
150.4660306

This is the p-value of the

hypothesis test H0: 1 = 0. To
reject it is to conclude that there is
a significant relationship between x
and y. Note that it is also the pvalue of the test for the correlation
coefficient H0: = 0.

SUMMARY
OUTPUT
Regression Statistics
Multiple R
0.795941592
R Square
0.633523017
Adjusted R Square
0.560227621
Standard Error
53.06706929
Observations
7

This is the standard error of the estimate,

which weve designated sy.x.
The number of observations or n.

ANOVA
df
Regression
Residual
Total

Intercept
Distance

1
5
6

SS
24340.85936
14080.56921
38421.42857

Coefficients
127.8233737
80.27609682

Standard
Error
37.42460754
27.30507654

Weve struck through the line of information

for Intercept to emphasize that these
numbers are rarely of interest in themselves.
Although the intercept is used as b0 in the
regression equation and in making
predictions, we do not usually test H0: 0 =
0.

MS
24340.859
2816.1138

F
8.6434217

Significance
F
0.032257789

t Stat
3.41549
2.9399697

P-value
0.0189304
0.0322578

Lower 95%
31.62035737
10.08616307

These numbers are the limits of a confidence

interval for the slope of the regression line: we
are 95% confidenct that 10.09 1 150.47.

Upper 95%
224.02639
150.4660306