6) Deploying a One Way Linear Regression Model in Excel.

This Blog entry is from the Linear Regression section in Learn Palisade.

The one-way linear regression output contains, at this stage, two values to be concerned with for the purpose of deployment, the Constant value and the Coefficient for the value for the single independent variable:

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The Constant represents a static value that will always be the starting point of a linear regression model, whereas the coefficient value for the Independent Variable would be a value that is added to the constant, as the multiplication of the Independent variables prevailing value. 

In this example, the one-way linear regression model will be deployed as a further abstracted variable in the original dataset (a precursor to ensemble modelling, including boosting).  Making note of the two values of interest in the Linear Regression output, navigate back to the dataset and select the cell in first row immediately after the last variable, in this example cell AD1:

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The formula that will be built in this Blog entry takes the form:

= Constant + (Kurtosis Value * Kurtosis Coefficient)

Put differently, using the values output from this Blog entries Linear Regression model:

= 0.000244006 + (Kurtosis Value * 0.000147134)

Kurtosis Value, in this example, will be the dynamic value contained in the example, which in this case is located in cell N2.  To construct the formula, start by entering the formula in cell AD1:

= 0.000244006 + (

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Then reference the variable Kurtosis in the exemplar, in this example cell N2:

=0.000244006 + (N2

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Multiplying the Kurtosis Value by the coefficient are specified, indeed calculated, in the Linear Regression model:

=0.000244006 + (N2 * 0.000147134

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Close the parenthesis to complete the formula, fill down, and name the column Model_1:

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The model has now been deployed across all examples in the file.  Scientific notation in the variable, the E value, suggests that the changes are forecast to be very small, hence many decimal places. 

Scientific notation (the E) can be corrected by setting the number value in the column to halt at the fifth decimal place, for example, using the format cell functionality of Excel (a Blog entry detailed outside of the scope of explicit documentation in this guide):

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