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How to Use your Computer to do Regression Analysis

​​Space Toy Co. (STC) produced Proportional Value (PV) job rates using the free-hand method, as shown previously, but chose to verify these results and construct a job rate line by using a computer and a statistical method called regression analysis.

Entering data to create a line

Space Toy Co. followed a series of steps to produce Proportional Value job rates using regression. Each step is summarized below. Please refer to your computer's "Help" section on regression analysis if you need further clarification on using this program.

An interactive​ exercise

Once you've read the step-by-step process below and know how a regression line is developed, you can create one yourself by using the interactive worksheet​ on the next page.

But first, take the time to learn how to create a Proportional Value line, step-by-step.

Step 1: Ent​er the male job data

The first step in producing Proportional Value job rates is to enter the representative male job classes, job values and job rates data. Space Toy Co. entered the following:

Chart # 10

Male Job Class Data

Representative Male Job ClassesJob ValuesJob Rates
Sales Representative56126.00
Financial Analyst54024.00
Service/Systems Technician45821.00

​Step 2: Apply the formula to the male job data

The statistical formula was then applied to the male job data and the computer program provided the regression output, as shown below.

Chart # 11

Regression Output

Intercept (constant) 0.188984
Std Err of Y Est 0.75658
R Squared 0.95469
No. of Observations 3
Degree of Freedom 1
X Coefficient (slope) 0.045178
Std Err of Coef.0.009842

An R-Squared of 0.95469, or 95%, indicates a line of good fit. Space Toy Co. initially tried to create a line using more data, but found that the representative group of 3 male jobs used in this example produced better results.

Step 3: Enter the female job data

The next set of data to enter is the list of unmatched female job classes, with their job values and job rates. Space Toy Co. entered the following:

Chart # 12

Female Job Class Data

Female Job ClassesJob ValuesJob Rates
Customer Service Clerk39117.00
Accounting Clerk33016.00
Receptionist/Typist28215.00

​Step 4: Apply​ the formula to the female job data

Adjustments were identified by applying the formula from the above calculation to the three unmatched female job classes. These are the final regression calculations and Proportional Value job rate results:

Chart # 13

Proportional Value Job Rate Results for Unmatched Female Job Classes

Unmatched Female Job ClassesJob ValuesJob RatesProportional Value RateAdjustment
Customer Service Clerk39117.0017.8537190.85
Accounting Clerk33016.0015.09784nil
Receptionist/Typist28215.0012.929279nil​

Adjustment required

One job rate needed to be adjusted - that of the Customer Service Clerk. The other two female job classes had job rates higher than the Proportional Value rate, therefore they did not require a pay equity adjustment.

The 199​1 Pay Equity Plan was amended to reflect this change.

Go Inter​active

Now you know how to produce a regression line, you can create one yourself by using the interactive worksheet on the next page. This interactive page will work only if you have enabled JavaScript. Otherwise, you can go to our non-interactive page, print it, and follow the directions for manual calculations.

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