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The LINEST function returns the parameters of a straight line that passes closest to all available data points using the least squares method.

This function is useful in statistical analysis and forecasting.

 

Syntax

LINEST(known_data_y, [known_data_x], [b], [stats])

Argument

Description

Permitted values

known_data_y

Array or range of known dependent values (y)

Any numerical values, ranges of cells with numbers.

Text values or empty cells without numbers are not allowed

[known_data_x]

(optional)

Values of independent variables that correspond to the “known_data_y” argument.

If the argument is not specified, an array of numbers {1;2;3;...} is used.

Any numerical values, ranges of cells with numbers.

Text values or empty cells without numbers are not allowed

[b]

(optional)

The logical value that determines the variable to be calculated in the linear equation y = m·x+b.

Calculates the parameter b (TRUE) or the value of the parameter m (FALSE).

By default, TRUE

TRUE or FALSE

[stats]

(optional)

Boolean value that determines whether to calculate additional regression statistics for variables (TRUE) or only the values of variables b and m (FALSE).

By default, FALSE

TRUE or FALSE

 

Statistics output structure

Row

Column 1

Column 2

Description

1

m (Xk)

b

Regression coefficients

m = slope (coefficient at X)

b = free term (constant)

Equation: y = m·x + b

2

SE(m)

SE(b)

Standard errors of coefficients

SE(m) = accuracy of slope estimation

SE(b) = accuracy of constant estimation

If SE > 2, then the coefficient is significant

3

SE(y)

Model quality indicators

R² = coefficient of determination (0 to 1)

SE(y) = standard error of the estimate Y

R² = 0.95 means: 95% of the variability in Y is explained by the model

4

F stat

df

Analysis of variance (ANOVA)

F = F-statistic (model significance)

df = degrees of freedom of residuals = n-k-1

5

SSreg

SSres

Sums of squares

SSreg = explained sum of squares

SSres = residual sum of squares

 

Examples of use

A simple example of linear regression

If you have sales and expense data and want to find ratios:

=LINEST(A2:A10, B2:B10)

Here, A2:A10 is the range of y values (for example, sales), and B2:B10 is the range of x values (for example, expenses).

Select two cells and press Ctrl+Shift+Enter after entering the formula.

The result will be an array where the first element is the slope coefficient and the second is the free term.

Linear regression calculation with statistics output

Suppose that the y data array is located in cells A1:A7: [1, 3, 5, 7, 10, 15, 19], and the x data array is located in cells B1:B7: [2, 5, 7, 9, 13, 17, 21].

To obtain regression data with statistics, select a cell array of 5 rows × 2 columns, enter the formula =LINEST(A1:A7, B1:B7, 1, 1), and press Ctrl+Shift+Enter.

Result:

Column 1

Column 2

Description

0.9601036269

-1.578238342

m = slope (coefficient at X)

b = free term (constant)

Equation: y = 0.9601·x − 1.5782

0.0336516431

0.413713877

SE(m) = accuracy of slope estimation

SE(b) = accuracy of constant estimation

Both coefficients are significant, since m/SE(m) = 28.5 > 2 and b/SE(b) = 3.8 > 2.

0.9938949836

0.5587736387

R² = coefficient of determination (0 to 1)

SE(y) = standard error of the estimate Y

R² = 0.994 means: 99.4% of the variability in Y is explained by the model

813.99862501

5

F = F-statistic (model significance)

df = here n (total observations) is specified, not df of residuals

F > Fcrit: The model is statistically significant

254.15314582

1.5611398964

SSreg = explained sum of squares

SSres = residual sum of squares

SSreg/SSres = 162.8: The model explains the data well

 

Notes

The function returns an array of values, so you need to select the range and press Ctrl+Shift+Enter.

Make sure your ranges are the same length, otherwise the function will return an error.

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