I am trying to determine the best process to analyse some predicted water levels against observed values at specific points. I can do this simply as 1 to 1 relationship to get a r square. I would however like to analyse this relationship with a third variable such as the distance from the closest surface water (ie lake). Is there a ARCGIS 10.1 statistics tool or process that anyone can recommend? Thank you for any suggestions.
I would recommend you not to use Arcgis but to use a statistical program like R, which has a good support for spatial operations and a much better support for other statistical operations.
A good intro is the book by Tomislav Hengl: A Practical Guide to Geostatistical Mapping