Regression Help - Using Excel

I need some help with regression analysis and in particular with the figures which Excel displays.

I have a sheet which lists test scores and I'd like to create a formula for predicting what a candidates first year salary would be based on their test scores.

Code:

`Candidate Maths IT Science History Salary`

----------------------------------------------------

Joe 78.7 82.5 81.7 95.0 $20,000

Mary 87.3 85.4 86.6 68.2 $24,000

Alison 74.6 83.4 79.2 73.1 $19,000

Sarah 86.8 91.5 90.2 54.2 $24,000

Alan 63.5 72.4 74.5 74.2 $17,000

Dane 78.3 62.8 61.0 85.2 $19,000

Beth 92.5 97.6 95.4 72.3 $27,000

Eliza 84.7 88.3 87.7 75.5 $23,000

Corey 79.3 87.2 87.1 82.2 $21,000

Don 91.3 85.2 86.3 95.4 $26,000

What I am trying to do is to use regression to see if I can construct a formula to predict a candidates salary based on their test results.

Salary = A*Maths Score + B*IT Score + C*Science Score + D*History Score

1. How can I determine if each test score is significant? Excel will state figures such as Multiple R, R Squar, Standard Error, t Stat and P Value but what do they mean!

2. How can I determine if the results are independent.

e.g. It's quite likely that Students with high Maths scores could also have high IT scores and thus there could be an error due to both results not being independent.

Here are the figures from Excel

Code:

**Regression Statistics**

-----------------------

Multiple R 0.98368756

R Square 0.967641215

Adjusted R Square 0.941754187

Standard Error 796.3869571

Observations 10

Code:

**ANOVA**

df SS MS F Significance F

Regression 4 94828839.07 23707209.77 37.37938615 0.00064401

Residual 5 3171160.927 634232.1854

Total 9 98000000

What are both tables telling me? Is this a good test or not?

Code:

**Coefficients**

Intercept -8559.315329

Maths 313.8348267

IT -203.3732385

Science 276.2479898

History -12.81029006

I presume these are the figures I need to use to construct the formula?

Salary = -8559 + 313.8 * Maths -203.3 * IT + 276.2 * Science - 12.8 * History

Also on that last table is shown:

Code:

** Standard Error**

Intercept 3539.055274

Maths 41.49049481

IT 148.8447209

Science 145.5849295

History 23.53289212

** t Stat**

Intercept -2.418531124

Maths 7.564017449

IT -1.366344989

Science 1.897504026

History -0.544356809

** P-value**

Intercept 0.060226461

Maths 0.000640424

IT 0.230071381

Science 0.116235029

History 0.609583227

Does this tell me if some of the test scores should or should not be used?

TIA