Statisticians can easily find the significance of a single independent variable in a linear regression by using a t-test. When multiple independent variables are involved, however, a t-test is no longer viable. In this case, statisticians use analysis of variance (ANOVA) to measure the variance between and within variable groups. From that data, they obtain a p-value for the entire model. If the p-value is greater than the previously chosen critical probability, none of the independent variables are correlated with the dependent variable; if the p-value is less than the critical probability, at least one of the independent variables is correlated with the dependent variable, and the statistician must continue testing.While the process of generating ANOVA statistics may be tedious by hand, Microsoft Excel 2007s Data Analysis add-in can generate it with ease.
- Skill level:
- Moderately Easy
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Things you need
- Microsoft Excel 2007
Look under the Data tab at the top of the window. If Data Analysis appears under the Analysis section, skip to step 5. Otherwise, continue.
Click the Microsoft Office button in the upper left corner. Select Excel Options.
Select Add-Ins from the menu on left. In the subsequent window, select "Analysis Toolpak." Click Go.
Select "Analysis ToolPak" from the prompt. Click OK. This will install the Data Analysis add-in to Excel.
Enter the dependent variable values, y, into column A of the spreadsheet. Enter the independent variable values, x, into column B. If you are using multiple independent variables, assign a new column to each variable.
Highlight an empty cell. Select "Data Analysis" from the Data tab at the top of the screen.
Select "Regression" from the prompt. Click OK. The Regression Properties window will appear.
Click "Input Y Range." Highlight the y values in column A.
Click "Input X Range." Highlight all columns that contain x values.
Click OK. Excel will generate an ANOVA report of the regression in a new worksheet.
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