1. 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.

2. Step 1. Enter the Data

3. Step 2. Regression Menu

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

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

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

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

8. 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.

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

10. Step 9. Create Correlation Matrix

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