Forecasting with Linear Regression in Excel: Tutorial Part 1

Forecasting with Linear Regression, Trendlines, and the TREND function
Part 1

---

Closed Caption:

hi this is Kim brittania i fat I would
am create a screencast four-year tear
help TV stand information on how to
create different types have line charts
and to forecast financial information
based on previous years history
information
and using the linear regression
technique in Alsace simple average
she lied about legacy and I individual
assignment 3
am some the charge that we can look at
today he might
them want to create a line chart where
somebody's different techniques
get you including your mamol for
assignment three
as you refer to the gate air and what it
shows
when you make your recommendations so
together some financial information I
went to the Google Finance
area and specifically looking at Verizon
and the annual data that reported care
and we're gonna look at the Ravinia for
Verizon fail last four years
and ma'am we're gonna come back in a
minute and also look at gayNet in CHEM
which will give us different types it in
from financial information
so I can slated that rising information
here under the spreadsheet
and their dollar values are in millions
of dollars
am so that's like eight billion dollars
in 2006
that showing here I'm so the first thing
we want to do
is one and the techniques that soften
yeast to
and give information about
years a data is
am called the mean Rs simple average and
sell if we were to take the average
after four years at gate at world s
years to average function
and select those four years have data
and the average
is and ninety six billion dollars $96
billion set a higher million
dollars am that was the simple average
so all dealers will go ahead and crash
this line
have the Ravinia and them are pretty n
the simple average
animal de San am linear regression
techniques and some other techniques to
try and
and forecast into the future and find
a line that can help best
team are closely match the data so we're
gonna go ahead and
insert let's go ahead and select the Rev
in an
for those four years Mr Kenny years a
line chart
and
this is just gonna be Verizon's horizons
Ravinia
and you can see that it got
an the Y access correct as and the ramen
and but if you look at the ex
access that's not the years that would
like to have in their
so we can I select the data fracture
wrecked and go to the horizontal or the
ex access and edit
that cell where can I select the years
rather than one two three four
for that data k so that looks a little
bit better
and then also Renn and instead of
starting at zero let's spread guess at a
little bit and move it out
a little bit higher so we're gonna
change an
the minimum value here on the lie access
to be maybe forty thousand
steady 0 settlement that so that will
spread s
out a little bit we can see kinda what's
going on a little bit better
so let's go ahead and graph that simple
average
in relation to the actual line that is
the day death for those four years
and I'm just gonna answer am a-line
shape
at about 96
passion
for the simple average
and I'm gonna make that be read
and a little bit lighter side shows up
your better am and I'm disconnect add a
a text box to label that as the average
K so that will give us some information
here
on so 11 denies at a linear regression
line
and we're gonna add a trend line here
and forecasted out for
time slots are four years from this year
chime in and click on the line that's my
data and at a chance line