Regression Using Excel Copyright (c) 2008 by The McGraw-Hill Companies. This material is solely for educational use by licensed users of LearningStats. It may not be copied or resold for profit.

Step 1. Enter the Data

Step 2. Regression Menu

Step 3. Set Up Regression Optional – request for residuals and plots

Step 4. Clean Up Results Note These results have been "cleaned up" by rounding, centering text, and improving the formatting.

Step 5. Check Fit Statistics Very good fit. R2 and R2adj are similar. Highly significant F.

Step 6. Check Coefficients Only three predictors are significant at a = 0.10.

Step 7. Check Residuals These two columns were inserted manually Unusual residual Note These results have been "cleaned up" by rounding, centering text, and inserting employee names and actual salaries.

Step 8. Check Residual Plots We are looking for evidence of heteroscedasticity ("fan-out" or "funnel-in" pattern of non-constant residual variance)

Step 9. Create Correlation Matrix

Step 10. Collinearity? Many of the predictors are correlated, most notably Age and Exper