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While dealing with statistical datasets, we often need to calculate the standard deviation of the y intercept. Microsoft Excel is a powerful and versatile piece of software. In Excel, we can calculate the standard deviation of the y intercept by using two simple and easy-to-follow approaches. So, let’s begin this article and start exploring these methods.
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2 Simple Methods to Calculate Standard Deviation of y Intercept in Excel
In this section of the article, we will learn two simple methods to calculate the standard deviation of the y intercept in Excel. Let’s say, we have the Profit Analysis for ABC Company as our dataset. Our goal is to find the standard deviation of the y intercept using this dataset.
Not to mention, we used the Microsoft Excel 365 version for this article; however, you can use any version according to your preference.
1. Applying LINEST Function
Using the LINEST function is another smart way to find the standard deviation of the y intercept in Excel. The LINEST formula is an array formula. So, it returns an array of outputs at a time. And each value of this array signifies a different value. So, we need to know what values we are getting by using the LINEST function.
In the following image, we have specified the names of different values that we get from the LINEST function. But, in this article, we aim to find the standard deviation of the y intercept only. This is denoted by Standard Error (Intercept) in the output table of the LINEST function. Now, let’s follow the instructions outlined below.
Steps:
- Firstly, apply the formula given below in cell E20.
=LINEST(C5:C16,B5:B16,,TRUE)Here, the range of cells C5:C16 indicates the cells of the Profit Amount column, and the range of cells B5:B16 refers to the cells of the Sales Quantity column.
- Following that, press ENTER.
Note: If you are using an older version of Excel, you need to press CTRL + SHIFT + ENTER instead of ENTER to get the output table.
Consequently, the LINEST function will return the following output table, as shown in the following image.
In the output table, we have marked our desired standard deviation of the y intercept value, which is 6562.373406.
For a simpler representation of the output table of the LINEST function, we have shown it in a single column.
2. Using Data Analysis Tool of Excel
Using the Data Analysis tool is one of the most efficient ways to find the standard deviation of the y intercept in Excel. Now, let’s follow the steps mentioned below to do this.
Steps:
- Firstly, go to the Data tab from Ribbon.
- After that, click on the Data Analysis option from the Analysis group.
Note: In Excel, the Data Analysis tool is not available by default. You need to enable the Data Analysis tool in Excel manually.
As a result, the Data Analysis dialog box will open on your worksheet.
- Now, in the Data Analysis dialog box, scroll down and search for the Regression option in the Analysis Tools field.
- Following that, choose the Regression option and click OK.
Consequently, the Regression dialog box will be available on your worksheet.
- Afterward, in the Regression dialog box, select the range of Y values in the Input Y Range field. Here, we selected the range of cells C5:C16 as our range of Y values.
- Then, select the X values in the Input X Range field. In this case, we selected the range of cells B5:B16 as our range of X values.
- Now, check the box of Confidence Level.
- After that, check the field of Output Range.
- Subsequently, choose the destination cell where you want to display the output table. In this case, we selected cell E4 as our destination cell.
- Finally, click OK.
Consequently, you will get the following output table, as demonstrated in the following image.
Here, we can see that we have a lot of parameters in the output table. We don’t need all of them. Our goal was to find the standard deviation of the y intercept.
So, here we have a marked value in the following picture. This value denotes the standard deviation of y intercept, which is 6562.37340634865.
Interpretation of Output Table
In this article, we only require the value of the standard deviation of the y intercept. This can be found in the intersection of the Standard Error column and the Intercept row in the output table, which is 6562.37340634865. The Standard Error parameter is nothing but the value of the standard deviation.
Here, we also have other parameters in the output table that are not necessary for this particular article. But if you are interested, you can follow our detailed guidelines about Interpreting Multiple Regression Results in Excel.
How to Calculate y Intercept in Excel
In this section of the article, we will learn how we can calculate the y intercept in Excel. Here, we have used the same dataset that we used for previous methods. So, let’s explore the steps mentioned in the following section.
Steps:
- Firstly, use the following formula in cell C18.
=INTERCEPT(C5:C16,B5:B16)Here, the range of cells C5:C16 represents the cells of the Profit Amount column, and the range B5:B16 refers to the cells of the Sales Quantity column. Then, the INTERCEPT function will return the y intercept value.
- Following that, hit ENTER.
Consequently, you will have the y intercept value in cell C18, as demonstrated in the following picture.
You can also use any of the methods described here to calculate the y intercept in Excel.
Read More: How to Find x-Intercept in Excel (4 Suitable Methods)
Practice Section
In the Excel Workbook, we have provided a Practice Section on the right side of the worksheet. Please practice it yourself.
Conclusion
So, these are the most common and effective methods you can use anytime while working with your Excel datasheet to calculate standard deviation of y intercept in Excel. If you have any questions, suggestions, or feedback related to this article, you can comment below. You can also have a look at our other useful articles on Excel functions and formulas on our website, ExcelDemy.
