Introduction

Excel Tutorial: Regression Prediction

Research Question: What should this job pay?
Application: To determine how much a job should pay, organizations try to achieve
two goals: internal equity and external competitiveness. Internal equity means paying
people doing different jobs differently based on what they do, so that people doing
"more difficult" jobs (however that is defined) will get paid more than people doing
"less difficult" jobs. External competitiveness means paying people based on the
market rates for a job, so that satisfactory performers are paid what other people in
other organizations are being paid for the same job. One method of assigning numbers
to jobs based on how "difficult" they are is the point method, and a simplified version
is used in this example. The market rate for jobs is based on salary survey data.
Data: Job Evaluation Total is the job evaluation point total indicating how "difficult" the
job is, with higher numbers indicating greater "difficulty". Salary Survey is the the
salary paid to each job at that organization. Do your analyses on this worksheet.
Task: Use the Data Analysis Tool Regression to get the Multiple correlation between
the Job Evaluation Total and Salary. Then use the regression equation to determine
how much each of the five jobs should be paid:
Predicted Salary=JobEvaluationTotal*JobEvaluationCoefficient+Intercept
For the Department Chair and Dean, use these Job Evaluation Point Totals:
Department Chair =
100
Dean =
200
Steps:
1. Click on the Data worksheet tab at the bottom of the spreadsheet.
2. From the Tools menu, select Data Analysis.
3. From the Analysis Tools menu, select Regression.
4. Click in the Input Y Range box, then select cells D1 to D49.
5. Click in the Input X Range box, then select cells C1 to C49.
6. Click in the labels box, because the input ranges contain the labels to make the output easier to read.
7. Click in the Output Range circle, then click in Output Range box, then select cell F1.
8. Leave the rest of the output options unchecked, and click on OK.
9. Select columns F to N, then from the Format menu select Column and AutoFit Selection, to make the output easier to read.
10. You may look at the Screen_Capture worksheet to check your work.
11. Write a formula to calculate Predicted Salary for each of the five jobs: Assistant Professor, Associate Professor, Full Professor,
Department Chair, and Dean. The Job Evaluation Point Totals for Department Chair and Dean are given above.
Conclusion: The predicted salaries for the five jobs are based on the job evaluation
(internal equity) and the salary survey data (external competitiveness).

Page 1

Data

Minnesota IIB Colleges

Augsburg College

Bethel College

Carleton College

College of Saint Benedict

College of Saint Catherine

Corcordia College-Moorhead

Gustavus Adolphus College

Hamline University

Macalaster College

Moorhead State University

North Central Bible College

Northwestern College

Southwest State University

St. John's University

St. Olaf College

University of Minnesota-Morris

Job
Job Evaluation Total Salary Survey
Full Professor
90
$48,600
Associate Professor
50
$40,000
Assistant Professor
30
$34,900
Full Professor
90
$49,300
Associate Professor
50
$41,500
Assistant Professor
30
$35,600
Full Professor
90
$73,100
Associate Professor
50
$55,800
Assistant Professor
30
$44,600
Full Professor
90
$53,100
Associate Professor
50
$46,700
Assistant Professor
30
$38,400
Full Professor
90
$50,300
Associate Professor
50
$42,500
Assistant Professor
30
$34,200
Full Professor
90
$57,400
Associate Professor
50
$43,000
Assistant Professor
30
$37,900
Full Professor
90
$56,600
Associate Professor
50
$46,600
Assistant Professor
30
$38,900
Full Professor
90
$61,200
Associate Professor
50
$42,500
Assistant Professor
30
$32,800
Full Professor
90
$77,000
Associate Professor
50
$57,900
Assistant Professor
30
$45,000
Full Professor
90
$52,400
Associate Professor
50
$42,900
Assistant Professor
30
$37,200
Full Professor
90
$40,800
Associate Professor
50
$36,600
Assistant Professor
30
$32,000
Full Professor
90
$42,700
Associate Professor
50
$36,800
Assistant Professor
30
$35,100
Full Professor
90
$56,200
Associate Professor
50
$45,800
Assistant Professor
30
$39,000
Full Professor
90
$58,100
Associate Professor
50
$45,100
Assistant Professor
30
$37,900
Full Professor
90
$57,600
Associate Professor
50
$46,600
Assistant Professor
30
$37,300
Full Professor
90
$62,855
Associate Professor
50
$47,000
Assistant Professor
30
$38,600

Page 2

Data

Source: 1997-1998 Faculty Salaries (Academe, March/April 1998)

Page 3

Results

Minnesota IIB Colleges

Augsburg College

Bethel College

Carleton College

College of Saint Benedict

College of Saint Catherine

Corcordia College-Moorhead

Gustavus Adolphus College

Hamline University

Macalaster College

Moorhead State University

North Central Bible College

Northwestern College

Southwest State University

St. John's University

St. Olaf College

University of Minnesota-Morris

Job
Job Evaluation Total Salary Survey
Full Professor
90
$48,600
Associate Professor
50
$40,000
Assistant Professor
30
$34,900
Full Professor
90
$49,300
Associate Professor
50
$41,500
Assistant Professor
30
$35,600
Full Professor
90
$73,100
Associate Professor
50
$55,800
Assistant Professor
30
$44,600
Full Professor
90
$53,100
Associate Professor
50
$46,700
Assistant Professor
30
$38,400
Full Professor
90
$50,300
Associate Professor
50
$42,500
Assistant Professor
30
$34,200
Full Professor
90
$57,400
Associate Professor
50
$43,000
Assistant Professor
30
$37,900
Full Professor
90
$56,600
Associate Professor
50
$46,600
Assistant Professor
30
$38,900
Full Professor
90
$61,200
Associate Professor
50
$42,500
Assistant Professor
30
$32,800
Full Professor
90
$77,000
Associate Professor
50
$57,900
Assistant Professor
30
$45,000
Full Professor
90
$52,400
Associate Professor
50
$42,900
Assistant Professor
30
$37,200
Full Professor
90
$40,800
Associate Professor
50
$36,600
Assistant Professor
30
$32,000
Full Professor
90
$42,700
Associate Professor
50
$36,800
Assistant Professor
30
$35,100
Full Professor
90
$56,200
Associate Professor
50
$45,800
Assistant Professor
30
$39,000
Full Professor
90
$58,100
Associate Professor
50
$45,100
Assistant Professor
30
$37,900
Full Professor
90
$57,600
Associate Professor
50
$46,600
Assistant Professor
30
$37,300
Full Professor
90
$62,855
Associate Professor
50
$47,000
Assistant Professor
30
$38,600

SUMMARY OUTPUT
Regression Statistics
Multiple R
0.7577128855
R Square
0.5741288168
Adjusted R Square
0.5648707476
Standard Error
6717.800928
Observations
48
ANOVA
df
Regression
Residual
Total

Intercept
Job Evaluation Total

Position
Assistant Professor
Associate Professor
Full Professor
Department Chair
Dean

Source: 1996-1997 Faculty Salaries (Academe, March/April 1997)

Page 4

SS
MS
F
Significance F
1 2798615164.62 2798615165 62.013882638 4.524973E-010
46 2075927068.19 45128849.309
47 4874542232.81

Coefficients Standard Error

t Stat
P-value
Lower 95%
Upper 95% Lower 95.0% Upper 95.0%
28777.801339 2406.70048438 11.957367161 1.02765E-015 23933.3691592 33622.233519 23933.369159 33622.233519
306.11049107 38.871719534 7.8748893731 4.52497E-010 227.865852725 384.35512942 227.86585273 384.35512942

Job Value

Salary
30
50
90
100
200

$37,961
$44,083
$56,328
$59,389
$90,000

Scatter Chart (Job Evaluation Total vs Salary Survey)

$80,000.00

$75,000.00

$70,000.00

$65,000.00

$60,000.00

Salary Survey

f(x) = 306.1104910714x + 28777.8013392857

R = 0.5741288168

$55,000.00

$50,000.00

$45,000.00

$40,000.00

$35,000.00

$30,000.00
20

30

40

50

60

Job Evaluation Total

70

80

90

100

Screen_Capture

Page 6