Finance Calculator
HP 10B


Regression

To perform a Linear Regression analysis, a second  variable needs to be added.   In this case, the yearly return on Stock J. To enter x,y pairs of data, begin by clearing the contents of R4 through R9 by pressing 2^nd . Enter the first x variable and press INPUT. Enter the first y variable and press key. The screen should read 1 indicating one pair of variable has been entered. Continue these steps until all variables have been entered.

     Year                   Return on Stock J  (Y variable)                      Market Return (X variable)
       1                          38.6%                                                                  23.8%
       2                         24.7+/-                                                                  7.2+/-
       3                          12.3                                                                      6.6
       4                            8.2                                                                      20.5
       5                          40.1                                                                      30.6

To perform two variable statistical analysis on this set of numbers, the commands explained in section X can be used. To find the regression variables:


Plugging these figures into the linear equation Y = a + bX we get Y = -8.922 + 1.603X, which can be used to predict a Y variable given the X variable and an X variable given a Y variable.  This can be done manually or the HP 10B will compute for you.

To estimate Y for a given X, enter the x-value and press 2^nd,

Suppose the market is predicted to have a 10% return the following year.  Enter this as the X variable. The screen should display Y = 7.1089.  This would be the return on stock J if the predicted market return was correct. 

Calculator Homepage | HP10B Homepage | HP10B Basics | HP10B Single Payment | HP10B Annuity
HP10B Growing Annuity | HP10B Loan Amortization | HP10B Interest Rate Conversion | HP10B NPV and IRR
HP10B Data Entry | HP10B Statistics | HP10B Regression

Last Updated on 1 May 2002, e-mail any comments to: robert.balik@wmich.edu