It is not the value of your standing which is increased by 4% per level of Connections; instead, the difference between 10 and your standing is decreased by 4% per level of Connections.
Then the equation is as follows:
Example: S = 3.03, Connections level of 3.
Therefore 10 - Δ is your new standing.
Note that Connections is not used if your standings are below 0.00 (-0.01); Diplomacy is used for that, instead.
The Connections skill cannot modify your standings if you have not received any standings with a corporation or faction. In such a case your effective standings are zero regardless of your level of the Connections skill.
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