In time series and econometric modeling, we often encounter the normality test as part of the residuals diagnosis to validate a model's assumption(s).
NumXL provides an intuitive interface to help Excel users conduct a normality test using several methods. In this tutorial, we’ll demonstrate the steps to construct a normality test of the hypothesis using NumXL functions in Excel.
- Select an empty cell to store the Normality test output table
- Locate the Statistical Test (STAT TEST) icon in the toolbar (or menu in Excel 2003) and click on the down-arrow. When the drop-down menu appears, select the “Normality Test”.
- The Normality Test dialog box appears.
- Select the cell range for the input data.
- Selecting the input data cell range will enable the “Options” and “Missing Values” tabs. Click the “Options” Tab.
- Select the Normality tests to include in the output table.
Note: Initially, all tests are selected as shown above.
- If your data include one or more intermediate observations with missing values, click the “Missing Values” tab.
- Initially, missing values are dropped from the sample data. If you wish to change this behavior/treatment, select an alternative method.
- Now, Click “OK” to generate the output table.
The normality test wizard generates the output table as shown below:
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