How to Use Method of Least Squares in Excel

In this tutorial, you will learn how to use method of least squares in Excel.

In order to find the line of best fit for a set of data, the least squares method is a type of mathematical regression analysis. It offers a visual representation of the relationship between the data points. The correlation between a known independent variable and an unknowable dependent variable is represented by each data point.

Once you are ready, we can get started by using real-life scenarios to help you understand how to use method of least squares in Excel.

Use Method of Least Squares

Before we begin we will need a group of data to be used to use method of least squares in Excel.

Step 1

Make sure your group of data is displayed in a clean and tidy manner in the first sheet.

Step 2

We may fit a regression line to this dataset using the approach of least squares by using the LINEST function. You may insert this formula =LINEST(A2:A14,B2:B14).

Step 3

The following fitted regression line can be written using the coefficients from the =LINEST() function:

y = -2.4358 + 0.3625(x)

Based on the value of x, we can use this equation to predict the value of y.

As an illustration, if x = 20, we would predict that y will equal 4.8142:

y = -2.4358 + 0.3625(20) = 4.8142