Wednesday, July 4, 2012

Regression using Scatter Plot

Using Scatter plot obtain Regression equation and R-Square (R-Sq) in Excel.



Data is taken from the UCLA site. I used two columns "Crime" and "Single".
Crime - Number of crimes in a particular location.
Single - Percentage population that is Single.

I am using Excel 2010.
Select these two columns and Insert a scatter plot.
Select Chart and go to Chart Tools > Layout > Trendline > More Trendline Options.
Select Linear Trendline and check on "Display Equation on Chart" and "Display R-Square on Chart".

The Value of R-Square indicates how well the equation predicts the value(Number of Crimes). Closer the value to 1, accurate is the prediction.

Can Refer the plot here

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