Microsoft® Excel® 2010: Data Analysis and Business Modeling

Chapter 54. Incorporating Qualitative Factors into Multiple Regression

Questions answered in this chapter:

• How can I predict quarterly U.S. auto sales?

• How can I predict U.S. presidential elections?

• Is there an Excel function I can use to easily make forecasts from a multiple regression equation?

In the first example of multiple regression in Chapter 53, I forecasted the monthly cost of plant operations by using the number of units of each product manufactured at the plant. Because you can quantify exactly the amount of a product produced at a plant, you can refer to the units produced of Product A, Product B, and Product C as quantitative independent variables. In many situations, however, independent variables can’t be easily quantified. In ...