# my cubic equation is O=C+aL+bL^2+cL3 how can i get the excel to help me to do this equation.I need to do a regression analysis to estimate the firm's short-run production function.

see tarha question dated july 2,2007 for all of the information thank you

first, plug your output and labor vectors into EXCEL. Then create new columns (or rows, depending on how you entered your O and L vectors). The new columns contain values for L^2 and L^3.

EXCEL can do linear regressions using the LINEST function. Its a pain to use and rather "klugey" -- use the EXCEL help to get the right format, etc.

Lotsa luck.

## To perform a regression analysis in Excel for estimating the firm's short-run production function, follow these steps:

1. Enter your output values in one column (let's say column A) and the corresponding labor input values in another column (let's say column B).

2. Create two new columns (let's say columns C and D) next to the labor column. In column C, calculate the values of L^2 by squaring the labor input values using the formula "=B2^2" (assuming your first labor input value is in cell B2). Drag this formula down to fill the entire column with the squared labor input values. In column D, calculate the values of L^3 by cubing the labor input values using the formula "=B2^3". Again, drag this formula down to fill the entire column with the cubed labor input values.

3. Now, select the three columns containing your output values, squared labor input values, and cubed labor input values (columns A, C, and D).

4. In the Excel ribbon, go to the "Data" tab and click on "Data Analysis" (Note: if you don't see "Data Analysis" in the data tab, you may need to enable it by going to "File > Options > Add-Ins > Manage "Excel Add-ins" > Go > Check "Analysis ToolPak" > OK).

5. In the "Data Analysis" dialog box, select "Regression" and click "OK".

6. In the "Regression" dialog box, enter the input range for your output values (column A in our example) in the "Input Y Range" field and enter the input range for your squared and cubed labor input values (columns C and D in our example) in the "Input X Range" field.

7. Optionally, you can choose to include labels or headers by checking the corresponding box.

8. Ensure that the "Output Range" field is set to a blank area on your worksheet where you want the output of the regression analysis to be displayed.

9. Check the box for "Residuals" if you want to include them in the output.

10. Click "OK" to perform the regression analysis.

Excel will calculate the coefficients (a, b, and c) for your cubic equation O = C + aL + bL^2 + cL^3 and display them in the designated output range. Additionally, it will provide other statistical measures such as R-squared, significance levels, etc., which can help assess the goodness of fit of the regression model.

Remember to interpret the results carefully and apply appropriate statistical techniques and tests to validate the soundness of the estimated production function.