We’re going to show you 2 methods of how to find the Residual Standard Error in Excel. To demonstrate our methods, we’ve picked a dataset with 3 columns: “Company”, “Advertising”, and “Revenue”. Moreover, we’re finding the relationship between Advertising and Revenue generation of Company XYZ. Consequently, this error will tell us how much our predicted values differ from the actual values.

## Find Residual Standard Error in Excel: 2 Ways

### 1. Regression Analysis to Find Residual Standard Error

For the first method, we will find the Residual Standard Error by applying the Regression Analysis to our dataset. Firstly, we’ll need to enable the **Data Analysis** feature in Excel.

**Steps:**

- Firstly, press
**ALT**,**F**then**O**to bring up the**Excel Options**window. - Secondly, from
**Add-ins**>>> select “**Go…**”.

Another dialog box will appear.

- Thirdly, select “
**Analysis Toolpak**” and press**OK**.

Thus, we will enable the **Data Analysis** feature. We can see the newly created feature inside the **Data **tab.

- Then, click on
**Data Analysis**.

The **Data Analysis dialog box **will appear.

- After that, select
**Regression**and press**OK**.

Now, we’ll select the following options inside the **Regression dialog box** –

**Input Y Range: D4:D10**. Here**Y Range**means(*Dependent variable***Revenue**).**Input X Range: C4:C10**. Here,**X Range**means(*Independent variable***Advertising**).- Select
**Labels**. **Output Range: B12**. We’ll put the**Regression**value here.- Finally, press
**OK**.

From the Summary Output, we’ll get our value. The Standard Error 74.30977729.

We can get it if we Square Root the value of the Mean Square of Residual (5521.94).

**Read More: ****How to Calculate SEM in Excel**

### 2. Find Residual Standard Error Using Generic Formula

We’ll find Residual **Standard Error** using this formula **Sqrt((y-ŷ)^2/df)**.

Where

- df = degrees of freedom.
- Residual = Observed value (y) – Predicted (advertising) value (ŷ).

In this last method, we’re going to use a formula to find Residual Standard Error in Excel. Here, we’ll use **the LINEST function** to find the Linear Regression equation then using the above formula we’ll find our values. We’ve also used **SUM**, and **SQRT** functions in this section to get our result. Moreover, we’ve changed our dataset.

**Steps:**

Now, we’re going to find the Intercept and Slope values of our Regression model.

- Firstly, we’ll select the cell range
**G9:H9**and type the following formula.

`=LINEST(C6:C11,B6:B11)`

This function returns statistical values from provided X and Y values. Our* y_values* are in cell range **C6:C11** and the x_values are in cell range **B6:B11**.

- Secondly, press
**CTRL + ENTER**.

This will convert our formula to an array formula, due to this we’ll see a *curly bracket*.

We’ll find the Intercept as 14.46445118 and slope -10.58989665. Our Regression equation will be ŷ= -10.59 + 14.46x.

Now, we’ll find the Predicted Revenues.

- Firstly, select the cell range
**D6:D11**. - Secondly, type the following formula.

`=$H$9+$G$9*B6`

We’re using this formula that we got the Regression equation.

- Then, press
**CTRL + ENTER**.

We’ll get the Predicted values from this.

Then, we’ll find the squared difference between predicted and actual values.

- Select the cell range
**E6:E11**and type this formula.

`=(C6-D6)^2`

- After that, press
**CTRL + ENTER**.

- Type this formula in cell
**E13**.

`=SUM(E6:E11)`

We’re adding all the values from cell **E6** to **E11**.

Here, df means degrees of freedom. We have 6 values in our dataset and there are 2 parameters in our dataset. Hence our df = 6-2 = 4.

Then, we’ll find the value of Residual Standard Error.

- Type this formula in cell
**E15**.

`=SQRT(E13/E14)`

We’re finding the square root value of the cell of the value **E13** divided by the value of **E14**.

- Finally, press
**ENTER**.

Thus, we’ll get our value.

**Read More: ****How to Calculate Standard Error of Regression in Excel**

## Practice Section

We’ve added a practice dataset in the Excel file.

**Download Practice Workbook**

## Conclusion

We’ve shown you 2 methods of how to find Residual Standard Error in Excel. Additionally, if you have any questions, feel free to comment below. Thanks for reading, keep excelling!

**Related Articles**

**How to Calculate Standard Error of Regression Slope in Excel****How to Calculate Standard Error of Skewness in Excel****How to Calculate Standard Error of Proportion in Excel**

**How to Calculate Standard Error of Correlation Coefficient in Excel****How to Find Standard Error of Estimate in Excel**

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