Linear regression spends the reality that there was a statistically significant relationship ranging from a couple of parameters to make you generate forecasts regarding you to definitely variable centered on your knowledge of one’s most other.
When you make an excellent regression study in compensation, you are trying to present or “predict” the new correlation, intimacy otherwise stamina anywhere between a couple of parameters for example Decades and Income, Period and Salary, Jobs Proportions and you can Income, Business Values and you may Salary etc.
- To decide internal equity of one’s company i.elizabeth. the higher the task, the better the newest income.
- To find the salary give out of perform inside same occupations things / amounts.
- To recognize outliers i.age. work falling beyond your a couple of handling traces (limitation and minimum).