Autocorrelation in Excel

You can probably find very good websites to perform regression analysis in excel. I believe that for economic variables it is important to understand when auto-correlation is present in the data. With auto-correlation, the variables move together, but the error term from the regression is higly correlated with the prior error, vilolating a fundamental necessity of a standard regeression. I don’t think there is an automatic way to adjust for autocorrelation, so I demonstrate how to make this adjustment in the files below. The regression analysis also makes extensive use of the OFFSET function so you can make all of the analysis very flexible.