Basic Excel Business Analytics #47: SST = SSR + SSE & R Squared & Standard Error of Estimate

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• published: 26 Nov 2015
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Download file from “Highline BI 348 Class” section: https://people.highline.edu/mgirvin/excelisfun.htm Learn: 1) (00:14) What we will do in this video: SST, SSR, SSE, R^2 and Standard Error 2) (00:44) What we did last video 3) (01:11) How do we think about “How good our Estimated Regression Line is”? 4) (01:26) What a Perfect Line would look like 5) (01:48) What is a Residual? 6) (04:35) Compare Ybar (Y Mean) Line to Estimated Regression Line 7) (06:18) Visual Proof of Calculations for SST, SSR, SSE and R^2. Visual proof that any Y value and Predicted Value has two parts: Explained and Explained, or, Error and Regression, or Residual and Regression. 8) (08:18) Benefit of using Regression Line over Y Bar Line. 9) (09:00) What we must Square the Errors / Residuals. 10) (11:02) Formulas for SST, SSR and SSE. 11) (12:12) Coefficient of Determination (goodness of Fit of Regression Equation to Sample Raw X Y Data Points), R Squared Formula. 12) (13:32) Use Excel FORECAST function to calculate Predicted Values. 13) (15:08) Using Excel to calculate Residuals 14) (15:45) SST = Sum of Squares Total, calculate in Excel 15) (16:29) SSR = Sum of Squares Regression, calculate in Excel 16) (17:06) SSE = Sum of Squares Error, calculate in Excel 17) (17:31) Alternative methods for calculating SST, SSR and SSE, including using the Excel function SUMSQ and residuals to calculate SSE. 18) (18:50) Use Excel to calculate Coefficient of Determination, R Squared (three methods: SSR/SST, 1-SSE/SST and RSQ Function) 19) (20:58) Relationship between Coefficient of Determination (R Squared) and Coefficient of Correlation 20) (24:42) Estimate of Variation (Mean Square Error = MSE) and Standard Deviation (Standard Error of the Estimate = s) for the Regression Line / Equation. 21) (27:20) Calculate Standard Error of the Estimate using STEXY function in Excel. 19) (28:14) Second Example on BMX Racing Bike and Price data set. 22) (30:02) Summary and Conclusion Download Excel File Not: After clicking on link, Use Ctrl + F (Find) and search for “Highline BI 348 Class” or for the file name as seen at the beginning of the video.