Today’s topic: “Regression Analysis Excel“. In the product development phase, regression analysis is using for improvement in life-cycle. For details analysis for two or more variable project managers use this analysis for further documentation of any project.
The term regression is a statistical term that refers to multiple measurements taken to get closer to the goal value or the mean value. Check out different types/layout of Regression Analysis Template Excel, just like critical path analysis template.
For example, obtaining one value and then changing the measurements if the answer is not close to the main value and obtaining a value again until the answer is close enough.
Related Article: Critical Chain Management
Key Template of Regression Analysis?
In the same manner, when we apply the concept of regression on a set of data it is a type of data analysis. To be more precise, the concept of regression in data analysis makes it RA.
Many definitions for this topic is available, more comprehensively is
“A detailed Analysis of Project or Product Development”
In addition to that, every small business in order to grow has to opt for regression analysis. We human beings have built-in regression programming in our brain which allows us with the ability to predict. You may not realize it directly but your brain is constantly applying the concept of regression to your daily life problems.
Why Is The Regression Analysis So Important?
This analysis used to identify the EYE Catching Factor influencing negatively or positively on the entire cycle. After analysis, the project manager takes action accordingly.
- Dependent Variable
- Independent variable
5 Advantages of Regression Analysis & Forecasting
Using this analysis we find out the most influencing factor in either group stages, or closure stage of project life-cycle.
- Use in Project forecasting reporting or trend analysis
- Conducting a survey is the primary focusing subject in this analysis
- X AND Y coordinated helping you for a trend in multiple years
- Multiple examples are available for different projects drafting
- Risk Profit Analysis Template (View in detail)
- Easily identify the X factor or Y factor (Example, Dropping Sales Last Month)
Similarly, each business no matter how small or huge, corporate or not, uses Regression Analysis. Although, as you incline towards larger businesses the term is explicitly put to use in a practical approach.
Multiple Regression Analysis Excel
Excel allows a built-in data analysis extension program that allows regression analysis.
Businesses use Excel to calculate their data analysis needs on regression. Let me explain that with a set of Data Example.
Imagine a small business that manufactures products and sells them. However, they’re about to grow their business and want to predict the Sold Quantity of several hypothetical future products. However, in order to go about that they need to identify the dependent and independent variables out of their data.
In this case, the dependent variable is Sold Quantity. In like manner, the Selling and Manufacture costs are independent variables.
- Generate a table in Excel with Sold Quantity, Selling Cost and Manufacture Costs as columns and fill in the data.
- Go to the File tab and select Options.
- In the options tab, open the Add-ins section.
- Select Manage Add-ins.
- Make sure the AnalysisToolPak is checked, otherwise select check.
- Go in the Data Tab on excel inside the Analysis group and choose the Data Analysis option.
- Select Regression and Click Ok.
- Fill in the details of the input ranges, select Labels, select New Worksheet Ply, select Residuals and select Ok.
Excel will generate a regression analysis output. However, the following a couple of factors may play a role in understanding the output:
Factors Affecting the Regression Analysis Output
- Multiple R: Towards 1 means a positive strong relationship. Towards -1 means a negative strong relationship. 0 means no relationship.
- R Square: R Square value determines how much percentage of our independent values fit the regression model. 90-95% is of good value.
- Adjusted R Square: Adjusted R Square represents the R Square value-based of multiple independent values.
- Standard Error: Shows the accuracy of the regression model table.
- F-Value: The F-Value should be less than 0.05
- P-Value: The P-Values must also be less than 0.05. This is where regression occurs, the variables with F and P-Values higher than 0.05 are deleted and new variables become part of the regression model to get a closer mean value.
- Regression Formula: The formula for regression line is y = ax + b. Where y is the dependent variable and conversely is the independent variable.
- Residual Values: The last part is the residual values which explain the difference between the predicted value and the original value.
Regression Analysis Template Excel
Filename: “Regression Analysis Template Excel”
File Size: 98 Kb
File Format: Ms Excel(xlsx)
Template Type: Advance (Free)
Download: Comment to get in your inbox
Author Name: Sara Tencredi
To sum up, an RA template in excel as explained above helps to predict potential values that may help business’s economic and financial needs.
Moreover, regression analysis will also work if a person wants to calculate rain predictability using average mm rain in a given month. A required template may be available on the internet or can modify after consideration of an individual’s data variables. Instead of building a data analysis template, again and again, one can use the existing useful template for regression analysis Excel.
- Multiple designed templates use in project planning
- You can also use a template in PPT slides
- Required 2007 to 2016 version of MS excel
- A template is also available in MAC
In other words, if there’s a need to predict a dependent variable using independent variables then Regression Analysis Excel template is the way to go. It automates the work, makes it more efficient, is faster and it is detail-oriented.
Every manager is using to find the negativity factor of the project, for example in a call centre if sales aren’t up to the mark compared to the previous month, this analysis is used to find the factor. Usually, this chart or matrix is attached with multiple other templates of excel like project charter, BCG, PERT.