PPT Slide
h R-Line: The value of the statistically computed least-squares-regression
line at the appropriate PES Points. This line represent the overall pay
trend and is sometimes referred to as the “line of central tendency” or the
“line of best fit.” The line value is computed using the formula
Y = mX + b where: X is the PES Points, m is the Regression Line Slope,
b is the Regression Line Intercept and Y is the resulting value of the
i % of R- Line: The ratio of the Average Pay to the Regression Line.
A percent greater than 100% means the position is paid “above” the line,
a percent less than 100% means the position is paid “below” the line.
Total Number of Matches Total Annual Pay
Total Number of Employees Total PES Points
Average Hourly/Monthly/Annual Pay Average PES Points
Regression Slope: The rate at which salaries (Y) increase with increased job
content (X). Calculated from two data points by the "change in Y" divided by the
"change in X". The value of "m" in the linear equation.
Regression Intercept: The value of Y (Salary) computed when X (Job Content)
is zero; Sometimes referred to as the "warm body constant". The value of "b" in
Coefficient of Determination: The portion of the dependent variable (Y, Salary)
which is directly related to the value of the independent variable (X, Job Content).
The remaining portion is due to other factors.