Book Image

Data Forecasting and Segmentation Using Microsoft Excel

By : Fernando Roque
Book Image

Data Forecasting and Segmentation Using Microsoft Excel

By: Fernando Roque

Overview of this book

Data Forecasting and Segmentation Using Microsoft Excel guides you through basic statistics to test whether your data can be used to perform regression predictions and time series forecasts. The exercises covered in this book use real-life data from Kaggle, such as demand for seasonal air tickets and credit card fraud detection. You’ll learn how to apply the grouping K-means algorithm, which helps you find segments of your data that are impossible to see with other analyses, such as business intelligence (BI) and pivot analysis. By analyzing groups returned by K-means, you’ll be able to detect outliers that could indicate possible fraud or a bad function in network packets. By the end of this Microsoft Excel book, you’ll be able to use the classification algorithm to group data with different variables. You’ll also be able to train linear and time series models to perform predictions and forecasts based on past data.
Table of Contents (19 chapters)
1
Part 1 – An Introduction to Machine Learning Functions
5
Part 2 – Grouping Data to Find Segments and Outliers
10
Part 3 – Simple and Multiple Linear Regression Analysis
14
Part 4 – Predicting Values with Time Series

Answers

Here are the answers to the preceding questions:

  1. Draw a chart of the variables and see whether there is a relationship by seeing whether the data points form a straight line with no scattered data.
  2. The difference between the expected values and the results from the linear model.
  3. Look in the t-statistics table for the critical value. If the calculated value of the t-statistic is greater than the critical value, we can reject the null hypothesis.
  4. The SSE is the difference between the expected results of the training data and the results of the regression model, squared. The SSE is also called the unexplained variation.
  5. A positive sign means a direct relationship. A negative sign means an inverse relationship.