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Thumbs up Answer: Deriving P-Value through LINEST Function

Hi RJ,

To derive the P-Values using the LINEST function in Excel, you can use the T.DIST.2T function. Here are the steps:
  1. First, use the LINEST function to calculate the regression coefficients and standard errors. For example, if your data is in cells A1:B10, you can use the following formula:

    Formula:
    =LINEST(B1:B10,A1:A10,TRUE,TRUE
    This will return an array of values, including the regression coefficients and standard errors.
  2. Next, calculate the t-statistics by dividing the regression coefficients by their standard errors. For example, if the regression coefficient for the first variable is in cell C1 and the standard error is in cell D1, you can use the following formula:

    Formula:
    =C1/D1 
    This will give you an array of t-statistics.
  3. Finally, use the T.DIST.2T function to calculate the P-values. For example, if the t-statistic for the first variable is in cell E1, you can use the following formula:

    Formula:
    =T.DIST.2T(ABS(E1),n-2
    where n is the sample size. This will give you the two-tailed P-value for the t-statistic.

You can repeat this process for each variable in your regression model.
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