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How LOGEST interacts with LINEST in Excel?

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  #1  
Old 13-03-2010
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How LOGEST interacts with LINEST in Excel?
  

Hello friends,
I have just started with the topic of the function that are statistical and used in Excel. I know the basic things of the functions that are used as statistics. But I am weak when there interaction comes. Now I am confused about an interaction that takes place between the Logest and Linest. So need your help for solving my doubt. Please tell me how LOGEST interacts with LINEST in Excel? Any other information related to the subject would also be helpful.!!

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  #2  
Old 13-03-2010
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Re: How LOGEST interacts with LINEST in Excel?

To illustrate LOGEST with the third argument set to FALSE, follow these steps :
  1. Create an Excel spreadsheet empty. Then you will have to make the appropriate table. Or you can also copy it from the Microsoft site.
  2. After pasting the table into your new Excel worksheet, click Paste Options, then click Match formatting destination.
  3. When the pasted range is selected, use one of the following procedures, depending on the version of Excel you are running :
    • In Microsoft Excel 2007, click the Home tab, click Format in the Cells group, and then adjust the width of the column.
    • In Excel 2003 and in earlier versions of Excel, point to Column on the Format menu, then click AutoFit.
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Old 13-03-2010
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Re: How LOGEST interacts with LINEST in Excel?

LOGEST data are in cells A4: B6. Detailed results for Excel 2002 and earlier versions of Excel and for Excel 2003 and later versions of Excel are presented in cells D4: E8 and G4: H8 cells, respectively. Cells A11: B13 show the same known_x, but have been turned on known_y 's in A4, A6 cells by pulling her by using natural logarithm function ln, Excel. LINEST is then drawn to these transformed data, and results are displayed in G11: H15 cells. Note that the results in cells G12: H15 are the same as the G5 LOGEST results: H8 cells. The coefficients LINEST in cells G11: H11 are converted to exponential. That is to say that the coefficients in LINEST cells are transformed using essentially the function EXP Excel to calculate the coefficients LOGEST in cells G4: H4.
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Old 13-03-2010
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Re: How LOGEST interacts with LINEST in Excel?

To summarize how LOGEST and LINEST interact, observe the following sequence of steps :
  1. You call LOGEST (known_y's, known_x's, constant, TRUE).
  2. LOGEST calls LINEST (LN of known_y's, known_x's, constant, TRUE).
  3. LOGEST receives the results table for this call to LINEST.
  4. LOGEST changes LINEST coefficients in the first row of the result table in LINEST exponential. For example, replace each LINEST coefficient, m, by EXP (m).
  5. LOGEST returns this result table LINEST amended to you that the result table LOGEST.
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Old 13-03-2010
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Re: How LOGEST interacts with LINEST in Excel?

In Excel 2002 and earlier versions of Excel, when LINEST is called with its third argument set to FALSE, it always calculates a regression sum of squares which is not correct because it uses a formula that is not correct. This problem was corrected in Excel 2003 and in later versions of Excel. Note that the values in the first two rows in the output table are not affected by this problem. In Excel 2002 and earlier versions of Excel, LINEST describes a workaround to generate the appropriate values in the last three rows in the output table LINEST.
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Old 13-03-2010
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Re: How LOGEST interacts with LINEST in Excel?

Problems have to be collinear in known_x LOGEST or LINEST in Microsoft Excel 2002 and in earlier versions of Excel. Predictor columns, the known_x are collinear if at least one column, c, can be expressed as a sum of many other users (c1, it and other values). Column C is called redundant because it contains information that can be built on columns (c1, it and other values). The fundamental principle in the presence of collinearity is that results should not be affected by whether a redundant column is included in the original data or removed from the original data. For the version LINEST in Microsoft Excel 2002 and in earlier versions of Excel do not search for collinearity, this principle was easily violated.
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