Question

The Collins company needs your help. They run a non-profit business that provides food to the homeless. Within the organization, an issue has been raised. It seems that some of the employees feel they are being treated unfairly and are underpaid based on sex.

Based on the dataset provided, test the following theories (ANSWER THESE QUESTIONS).

1. The Collins company pays Males more than Females.
2. The Collins company pays people more money based on their Experience
3. The Collins company pays people more money based on their Education
4. The Collins company pays people more money based on the number of Months they have worked for the firm.
5. Then conduct an overall test of the model.

To solve for the above questions, you will need to create a regression equation where Salary is the dependent variable and Education, Experience, Months Worked and Males are the independent variables.  

Conduct any tests you need to determine if this is true. For every test, state the hypothesis, conduct the test, show the comparison value, graph the data and state the conclusion.

SHOW ALL YOUR WORK IN A WORD DOC FOR FULL CREDIT. TEST ALL AT α = .05.

← → С James Dereme Data File Edit View Insert Format Data Tools Add-ons Help Last edit was 2 minutes ago і https://docs.google.com/spreadsheets/d/1 1f-8QApvwhrVsHQodTKmdvQzYnH-mzdu3gT7GH6PhyE/edit#gid=17153372 19 SHAREJ n~ē? 100%, $ %0.00 123- Calibri SUMMARY OUTPLT ssion Stetistics 4 Multiple 5 R SCuare 6 Adjusted R SquarE 7Standard Error 8 Observations 0.7147543036 0.51U83/144 0.4886407015 507.4215001 93 12 Regression 13 Residual 14 I0t 1 23665351.39 5916337.84 22.97815932 88 22657938.93 257476.578 90.32 463 16 17 Intercept 19 X Variable 2 21 Variable 1 3526.122111 327.7251214 10.7602916 90.02031094 4.5935079 3.54549737 0.000451099540.94704785 139.093574 40.94704785 139.03574 1.268990015 0.5877368509 2.15911255 0.0335623925 0.100986527 2.436993502 0.100986527 2.436993502 23.406235 // 5.201据628U5 4.50045245:0LXX)020bb2813.ü /0b13器333./418h // 1 13.U/U61383 33./4185//1 722.1606711 117.8215905 6.131819030.0000000240 488.3150186 956.6063241 188.3150186 956.6063241 0 2875.136702 1177.707519 2875.136702 1177.707519 X Variable 1 Variable3 +Sheet2 Sheet1 447 PM Type here to search ENG 12/14/2018 4

Answer 1

To determine the significance of the individual predictor, t test is conducted for each of them. Note the p-values of the test, we find that the p values of the t test for all the four predictors are all less than 0.05.

We may conclude that all the four predictors have a significant effect at 5% level, on the response variable (salary).

Based on the output, the fitted regression equation can be expressed as

where,

Education and Gender are dummy variables.

Gender = 1 for male and = 0 otherwise

a. The increase in salary for change in level of gender is 722.46.

i.e. Salary increases by 722.46 (Gender = 1) = 722.46 units for males as compared to females (when Gender = 0).Hence, we may conclude that the Collins company pays Males more than Females.

b. For experience, from the coefficient (1.27), we find that the salary increases by 1.27 units for every additional year of experience. We may conclude that the Collins company pays people more money based on their Experience.

c. For education, from the coefficient (90.02), we find that the salary increases by 90.02 units for every increase in the level of experience. We may conclude that the Collins company pays people more money based on their Education.

d. For no. of months worked, from the coefficient (73.41), we find that the salary increases by 73.41 units for  for every additional no. of months worked. We may conclude that the Collins company pays people more money based on the number of Months they have worked for the firm.