The linear trend line is best to be used with linear data sets when the data points in a chart resemble a straight line. R-squared value measures the trendline reliability - the nearer R 2 is to 1, the better the trendline fits the data.īelow, you will find a brief description of each trendline type with chart examples.Trendline equation is a formula that finds a line that best fits the data points.Additionally, Microsoft Excel allows displaying a trendline equation and R-squared value in a chart: This formula returns the same result as that returned by the INTERCEPT function.When adding a trendline in Excel, you have 6 different options to choose from. In the example shown, the intercept formula can be manually created like this: =AVERAGE(C5:C9)-SLOPE(C5:C9,B5:B9)*AVERAGE(B5:B9)
The formula used by Excel to calculate slope is the same one used by the SLOPE function: The equation for the intercept of the regression line (a) is: This formula returns 2, based on known_ys in C5:C9, and known_xs in B5:B9. Typically, values are supplied as ranges. In the example shown, the formula in E5 is: =INTERCEPT(C5:C9,B5:B9) // returns 2 Values can be entered directly in INTERCEPT as array constants: =INTERCEPT() // returns 1 Both arguments must contain the same number values, or INTERCEPT will return #N/A. The known_ys represent dependent values and known_xs represent independent values. The INTERCEPT function takes two arguments, known_ys and known_xs, which should be a range or array of numeric values. Use the INTERCEPT function to calculate the value of a dependent variable when the independent variable is zero (0). A regression line is a line that best fits that known data points. The intercept point is based on a regression line plotted with known x and y values. The INTERCEPT function returns the point at which a line will intersect the y-axis based on known x and y values.
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