Linear Regression & Correlation Analysis for Forecasting (Excel Example)

This video explains linear regression and correlation analysis as forecasting tools, taught by Operations University instructor Brent Bolton. Unlike trend projections where time is the independent variable, this lesson shows how regression can be used when the independent variable is something other than time, such as payroll, population, or utilization. Using a real-world construction industry example, the video walks through building a regression equation, interpreting R² and correlation (R), and validating whether a forecast is statistically meaningful. A full Microsoft Excel walkthrough is included. 👉 Get Certified (Lean Six Sigma) Watch the full Lean Six Sigma playlist, then complete your certification at OperationsUniversity.org to earn your Lean Six Sigma certificate. 💰 Advance Your Credentials Certification & Pricing = Yellow Belt $99 • Green Belt $499 • Black Belt $899 — or all 3 for $1,199 (save when purchasing together). Employer packages: Bulk enrollments & reporting available. 💡 What You’ll Learn in This Video: • How linear regression differs from least squares trend forecasting • How to identify dependent vs. independent variables • How to calculate a regression equation manually • How to forecast using regression • What R² (coefficient of determination) means • How to interpret correlation (R) strength and direction • When regression forecasts are reliable (and when they’re not) • How to perform regression and correlation analysis in Excel 📢 Call to Action ✅ Subscribe for operations & analytics content ✅ Visit OperationsUniversity.org to get certified ✅ Share with students, analysts, and project managers #LinearRegression #Forecasting #Correlation #OperationsManagement #ExcelForecasting #BusinessAnalytics #SupplyChainManagement