# How to Perform Linear Regression in Google Sheet

You’re going to learn how to create a graphical representation of Linear Regression using Google Sheets. Formulate linear relationships between variables.

## Why use Linear Regression?

Linear regression helps in predicting the value of a variable based on the value of the other variable if a linear relationship exists between them. In this article, you will go through how you can perform linear regression using Google sheets. But before jumping in, the dependent variable is on the Y-axis and the independent variable on the X-axis.

Follow the steps as described in this article to get a graphical representation along with the equation, as shown below: Figure 1: Linear regression graph for Profits vs Year. You can see the linear equation and the trendline in the graph

## Steps to Perform Linear Regression

### Step 1:- Prepare and select data

• To perform regression, you need to have a dataset with a dependent variable (here Profits) and an independent variable (here Year).
• Select the dataset you want to perform linear regression on.
• Left-click on cell A1 and drag it down to B23 along with the titles of the variable columns as shown below:

### Step 2:- Insert Chart

• Now, click on the Insert tab from the navigation bar.
• Select the Chart option to create a graphical representation of the regression.

### Step 3:- Create a scatter plot

• Now, navigate to the Chart type drop-down menu.
• Select Scatter chart as the chart type and select the Scatter plot, as shown below : Figure 4: Selecting scatter plot from scatter chart to visualize individual data points on the plot

### Step 4:- Customize the graph settings to visualize

• To plot the trend line, select the Customize tab
• Go to the Series tab for plotting the trend line : Figure 5: The graph above shows the scattered data points which were done in the previous step

### Step 5:- Plot trendline, equation of graph, and method used for regression analysis

• Checkmark the Trendline option to see the trend line of the points as seen in the graph below.
• Navigate to the Label drop-down menu
• Select the Use Equation option to display the equation of the graph.
• Tick mark the Show R2 checkbox to demonstrate the R2 value of the graph.
• The higher the R2 value, the higher is correctness to predict any value and fit to the model.