The Microsoft program, belonging to Office called Excel, was created in order to be able to work with quantitative data and perform the respective calculations. Whereas, arithmetic, basic and even other more complex operations, such as mathematical or statistical functions , can be executed . In this sense, it will be useful to use Excel to perform all these calculations; however, you must know the use of excel functions in spreadsheets .
It should be noted that the mentioned program is capable of performing the Excel function LINEAR ESTIMATION and LOGARITHMIC ESTIMATION, which are applied for statistical purposes. Therefore, in the following section each of the steps that will allow the optimal execution of the indicated functions will be deduced .
Know how to build a Linear Estimate in Excel?
When it is required to obtain statistical data, it is essential to apply the Excel Function for a LINEAR ESTIMATION, through the “least squares” method . Taking into account that this type of function is represented as an array of values, so it will depend on various arguments. You should also consider that the linear estimation will help you calculate the growth rate .
Relevant arguments of the function
- With “AND” known : The Excel function for LINEAR ESTIMATION in this case, it is mandatory that the set of “AND” have values; since, the formula of a linear equation must be fulfilled: Y = mx + b.
- If for some reason “Y” belongs to a single column , each value of “x” will be considered as the independent variable.
- Similarly, if “Y” belongs to a single row, the values of the variable “x” will be taken as independent.
- With known “x” : This type of Excel Function for LINEAR ESTIMATION also has another important method, although it is optional, that is, it is not mandatory. These are the known values of the variable “x” in the equation described above, where, when omitted from the equation, the most logical thing will happen. The program assumes that its size is identical to the values of “Y”.
- With constant value “b” : This case is not mandatory, but it deals with the logical term that establishes whether the highlighted constant can be equal to zero or not “0”. In general, if the constant value is obviated or its value is “True” , that is, equal to 1, it can be found in a simple way; otherwise, if it is “False” directly, this constant is taken as equal to 0.
- Statistical values : They refer to the logical value that indicates whether or not to return the mentioned values; then, if it is “True” the function returns the additional values, if it is “False” it only returns the coefficients “m” and the constant “b”.
In general, this type of Excel Function for LINEAR ESTIMATION will be very useful when you have to apply important statistical operations ; Likewise, this process is often widely used to carry out a commercial organization carrying out estimation or linear regression as a sales forecasting method .
Discover how to build an Exponential Estimate in Excel?
It should be mentioned that the Excel function for LOGARITHMIC ESTIMATION is applied by calculating the values of a curve in increasing form. This is because, in the regression analysis, the respective values are adjusted and responds to an exponential graph through a matrix of values, whose formula is represented as follows:
- Y = b. m (raised to the exponential of “x”)
In this sense, the process to be followed is the same as that indicated in the Excel Function for LINEAR ESTIMATION; except that in this case the LOGARITHMIC ESTIMATE that is returned is: {mn, mn-1,…, m1, b}.
Finally, as is evident, the Excel Function LINEST and LOGEST are directly related; since the differences that must be observed to carry out their development in this optimal program are minimal . However, for more information, consult the help on the function at Microsoft.
