gpa: grade between 1 to 20

PE: previous professional experience in months

gender: 1 male; 0 female
wage: monthly wage in Euros

x y Method 1: add trendline in scatter plot

gpa Wage
15 1000
18 2000 Wage
15 3000 9000
17 2500
8000
19 2300
7000
16 1000
12 600 6000
13 700 5000
13 700 f(x) = 595.897121861604 x − 7080.80220453154
4000 R² = 0.444531105532056
15 750 3000
15 1300
2000
16 1300
1000
12 1300
17 2100 0
11 12 13 14 15 16 17 18 19 20 21
20 8000
19 6500
16 4000
17 2000
19 3000
17 3200
16 3100
15 2100
17 1500
16 1200
15 1700
13 1800
18 7000
 Method 2: Data analysis/Regression

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.67
R Square 0.44
Adjusted R Square 0.42
Standard Error 1465.23
Observations 27
4

ANOVA
df SS MS F
Regression 1 42953147.35 42953147.35 20.01
Residual 25 53672593.39 2146903.74
19 20 21 Total 26 96625740.74

Coefficients Standard Error t Stat P-value

Intercept -7080.80 2145.25 -3.30 0.00
X Variable 1 595.90 133.22 4.47 0.00
 Method 3: Functions

intercept -7080.80
slope 595.90
R2 0.44

Significance F
0.00

Lower 95% Upper 95% Lower 95.0% Upper 95.0%

-11499.03 -2662.57 -11499.03 -2662.57
321.52 870.28 321.52 870.28

𝑤(𝑎𝑔) ̂𝑒
 GPA
Method 4: Linest function Extra: getting part of an array function: for example R2
b1 b0
595.90 -7080.80 0.44 First way
133.22 2145.25 0.44 Second way
0.44 1465.23
20.01 25
### ###

t-stat 4.47 -3.30

p-value 0.00 0.00

R2 44.45%

Estimated wage when:

gpa 15

𝑤(𝑎𝑔) ̂𝑒 1,858
example R2
gpa: grade between 1 to 20
PE: previous professional experience in months
gender: 1 male; 0 female
wage: monthly wage in Euros

x1 x2 y Method 1: add trendline in scatter plot

gpa PE Wage
15 0 1000
18 10 2000
15 15 3000
17 10 2500
19 7 2300
16 0 1000
12 0 600
13 0 700
13 0 700
15 0 750
15 3 1300
16 4 1300
12 5 1300
17 10 2100
20 30 8000
19 20 6500
16 0 4000
17 0 2000
19 0 3000
17 0 3200
16 0 3100
15 12 2100
17 7 1500
16 18 1200
15 8 1700
13 5 1800
18 5 7000
Method 2: Data analysis/Regression

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.73
R Square 0.54
Adjusted R Square 0.50
Standard Error 1366.92
Observations 27

ANOVA
df SS MS
Regression 2 51782484.35 25891242.17
Residual 24 44843256.39 1868469.02
Total 26 96625740.74

Coefficients Standard Error t Stat

Intercept -5449.16 2137.44 -2.55
X Variable 1 459.97 139.13 3.31
X Variable 2 85.96 39.55 2.17
 Method 3: Functions

F Significance F
13.86 0.00

P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%

0.02 -9860.61 -1037.70 -9860.61 -1037.70
0.00 172.83 747.12 172.83 747.12
0.04 4.35 167.58 4.35 167.58
 PE GPA
Method 4: Linest function Extra: getting part of an array function
b2 b1 b0
85.96 459.97 -5,449.16 0.54 First way
39.55 139.13 2,137.44 0.54 Second way
0.54 1,366.92 #N/A
13.86 24 #N/A
51,782,484.35 44,843,256.39 #N/A

t-stat 2.17 3.31 -2.55

p-value 0.03 0.00 0.01

R2 53.59%

Estimated wage when:

gpa 15
PE 12

𝑤(𝑎𝑔) ̂𝑒 2,482
tting part of an array function: for example R2

Second way
gpa: grade between 1 to 20
PE: previous professional experience in months
gender: 1 male; 0 female
wage: monthly wage in Euros

x1 x2 x3 y Method 1: add trendline in scatter plot

gpa PE gender Wage
15 0 1 1000
18 10 0 2000
15 15 0 3000
17 10 0 2500
19 7 0 2300
16 0 0 1000
12 0 0 600
13 0 0 700
13 0 1 700
15 0 1 750
15 3 1 1300
16 4 1 1300
12 5 0 1300
17 10 0 2100
20 30 0 8000
19 20 1 6500
16 0 1 4000
17 0 1 2000
19 0 1 3000
17 0 1 3200
16 0 1 3100
15 12 1 2100
17 7 1 1500
16 18 1 1200
15 8 0 1700
13 5 0 1800
18 5 0 7000
Method 2: Data analysis/Regression

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.73
R Square 0.54
Adjusted R Square 0.48
Standard Error 1390.38
Observations 27

ANOVA
df SS
Regression 3 52163292.63
Residual 23 44462448.11
Total 26 96625740.74

Coefficients Standard Error

Intercept -5512.50 2178.80
X Variable 1 474.37 145.18
X Variable 2 80.17 42.29
X Variable 3 -250.88 565.26
 Method 3: Functions

MS F Significance F
17387764.21 8.99 0.00
1933149.92

t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
-2.53 0.02 -10019.69 -1005.31 -10019.69 -1005.31
3.27 0.00 174.04 774.70 174.04 774.70
1.90 0.07 -7.32 167.66 -7.32 167.66
-0.44 0.66 -1420.21 918.45 -1420.21 918.45
 Gender PE GPA
Method 3: Functions Method 4: Linest function
b3 b2 b1 b0
-250.88 80.17 474.37 -5512.50
565.26 42.29 145.18 2178.80
0.54 1390.38 #N/A #N/A
8.99 23 #N/A #N/A
52163292.63 44462448.11 #N/A #N/A

t-stat -0.44 1.90 3.27 -2.53

p-value 0.66 0.06 0.00 0.01

R2 53.98%

Estimated wage when:

gpa 15
PE 12
Gender 0

𝑤(𝑎𝑔) ̂𝑒 2,565
Extra: getting part of an array function: for example R2

0.54 First way

0.54 Second way
 x y
gpa Wage
15 1000
18 2000
15 3000
17 2500
19 2300
16 1000 y
12 600 9000
13 700
8000
13 700
7000
15 750
15 1300 6000
16 1300 5000
12 1300 f(x) = 595.897121861604 x − 70
4000 R² = 0.444531105532056
17 2100
3000
20 8000
19 6500 2000
16 4000 1000
17 2000 0
19 3000 11 12 13 14 15
17 3200
16 3100
15 2100
17 1500
16 1200
15 1700
13 1800
18 7000
 y

f(x) = 595.897121861604 x − 7080.80220453154

R² = 0.444531105532056

12 13 14 15 16 17 18 19 20 21
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.6667316593
R Square 0.4445311055
Adjusted R Square 0.4223123498
Standard Error 1465.231632
Observations 27

ANOVA
df SS MS F Significance F
Regression 1 42953147.3543 42953147.354 20.00702 0.000146
Residual 25 53672593.3864 2146903.7355
Total 26 96625740.7407

Coefficients Standard Error t Stat P-value Lower 95%Upper 95%Lower 95,0%

Intercept -7080.8022045 2145.25159945 -3.3006861323 0.0029 -11499 -2662.574 -11499
X Variable 1 595.89712186 133.223266434 4.4729208179 0.000146 321.5187 870.2756 321.5187
Upper 95,0%
-2662.574
870.2756
 x y
gpa Wage
15 1000
18 2000 -7080.802
15 3000 595.8971
17 2500 44.45%
19 2300
16 1000
12 600
13 700
13 700
15 750
15 1300
16 1300
12 1300
17 2100
20 8000
19 6500
16 4000
17 2000
19 3000
17 3200
16 3100
15 2100
17 1500
16 1200
15 1700
13 1800
18 7000
 x y
gpa Wage
15 1000
18 2000
15 3000 595.8971219 -7080.8022
17 2500 133.2232664 2145.251599
19 2300 44% 1465.231632
16 1000 2001% 25
12 600 42953147.35 53672593.39
13 700
13 700
15 750 0.444531106
15 1300
16 1300
12 1300
17 2100
20 8000
19 6500
16 4000
17 2000
19 3000
17 3200
16 3100
15 2100
17 1500
16 1200
15 1700
13 1800
18 7000