Multiple Correlation and Multiple Regression

  • Thomas J. Quirk


There are many times in business when you want to predict a criterion, Y, but you want to find out if you can develop a better prediction model by using several predictors to predict Y instead of a single predictor as we discussed in Chap. 6 of this book. The resulting statistical procedure is called “multiple correlation” because it uses two or more predictors, each weighed differently in an equation, to predict Y. The job of multiple correlation is to determine if using several predictors can do a better job of predicting Y than any single predictor by itself. The equation for multiple correlation is presented, explained, and a practical business problem is used to present the Excel commands needed to find the multiple correlation and the multiple regression equation generated from the data set. Excel commands are also used to create a SUMMARY OUTPUT which gives the coefficients needed to write the multiple regression equation for the data. Finally, the Excel commands needed to find the correlation between all the variables is explained so that you can create a “correlation matrix” for your data set. You will learn how to read this correlation matrix to determine the correlation between any two variables in your study. Three practice problems are given at the end of the chapter to test your Excel skills, and the answers to these problems appear in Chap. 9 of this book. An additional practice problem is presented in the Practice Test given in Chap. 10 along with its answer in Chap. 11 of this book.


Correlation Matrix Decimal Place Excel Spreadsheet Annual Sale Multiple Regression Equation 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. Keller, G. (2009). Statistics for management and economics (8th ed.). Mason, OH: South-Western Cengage Learning.Google Scholar
  2. Levine, D. M., Stephan, D. F., Krehbiel, T. C., & Berenson, M. L. (2011). Statistics for managers using Microsoft Excel (6th ed.). Boston: Prentice Hall/Pearson.Google Scholar
  3. Schatz, A. (2005) Follow the points to find a Super Bowl Champ. The New York Times (23 Jan 2005, p. G 11).Google Scholar

Copyright information

© Springer Science+Business Media New York 2012

Authors and Affiliations

  • Thomas J. Quirk
    • 1
  1. 1.Webster UniversitySt. LouisUSA

Personalised recommendations