Regression: which parameters to use and how to plot the data

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ducmod
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Hello!
I am yet very weak in statistics, but I am learning some basic finance, and this requires to create regression.
Please, take a look at attached files - one excel that contains the results of regression and one screen shot of the window of StatPlus that I have to fill in. Before using my own data I would like to replicate the analysis presented in the file. I don't understand which columns are used to perform a regression model. There is part of data that computes variables for regression model, and it contains 4 columns. The goal is to find predicted dividends. So I assume that dividends per share is the dependent variable. But I still don't understand which columns I should use and how.
I will be very grateful for your help!
Thank you very much!
Edit: corrected the excel file, and added my results.
 

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  • regression_model_test.xlsx
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Hi Ducmod,
In your attached Excel sheet, the columns used for the regression are clearly marked. Columns G-J are titled "Data for Regression Model".

The model was described by:
##D_t = a + bD_{t-1}+cEPS_t+d(\Delta EPS)##
You are correct that the Dividend, ##D_t## is your dependent variable, and you have 3 independent variables for this model, ##D_{t-1}## is called the "lagged DPS", ##EPS_t## is the "annual EPS", and ##\Delta EPS## is the "change in EPS".

The coefficients for the model, a, b, c, and d, are listed in that order in your output table.

Does that address your question?
 
RUber said:
Hi Ducmod,
In your attached Excel sheet, the columns used for the regression are clearly marked. Columns G-J are titled "Data for Regression Model".

The model was described by:
##D_t = a + bD_{t-1}+cEPS_t+d(\Delta EPS)##
You are correct that the Dividend, ##D_t## is your dependent variable, and you have 3 independent variables for this model, ##D_{t-1}## is called the "lagged DPS", ##EPS_t## is the "annual EPS", and ##\Delta EPS## is the "change in EPS".

The coefficients for the model, a, b, c, and d, are listed in that order in your output table.

Does that address your question?
Hello RUber,
Thank you very much for your answer. Yes, your answer does address my problem. I will now try to run regression again. It is very challenging for me )
Thank you!