The following is a description of regression using Excel including descriptions of the Durbin-Watson Test for autocorrelation, the White Test for heteroschedasticity, and multicollinearity tests. This is a cross-section analysis of several universities.
E is a dummy variable for whether the university is a public or private university.
If the Data Analysis command is not on the Tools menu, you need to install the Analysis ToolPak in Microsoft Excel in order to perform regression. Once installed, open the Tools menu and click the data analysis. A regression box will appear. Our computer budget problem has four independent variables whose range needs to be entered in the input X range of the regression box. You may identify a sheet for the output.