Below you will find current annual salary data and related information for 30 employees at Gamma Technologies,

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Below you will find current annual salary data and related information for 30 employees at Gamma Technologies, Inc. These data include each selected employees gender (1 for female; 0 for male), age, number of years of relevant work experience prior to employment at Gamma, number of years of employment at Gamma, the number of years of post-secondary education, and annual salary. The tables of correlations and covariances are presented below. Please answer a,b, & c below.

Table of Correlations

Gamma Prior Age Gender Salary Education Exp Exp Gender Age -0.111 0.054 -0.203 -0.039 -0.154 1. Prior Exp 0.8 0.916 0.58


Table of Covariances (variances on the diagonal)

Gamma Prior Exp Age Education Salary Gender Exp Gender Age Prior Exp Gamma Exp 0.259 -0.633 134.051 0.117 39.06 -0.7 72.


a. Which two variables have the strongest linear relationship with annual salary?

b. For which of the two variables, number of years of prior work experience or number of years of post-secondary education, is the relationship with salary stronger? Justify your answer.

c. How would you characterize the relationship between gender and annual salary?

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College Accounting Chapters 1-30

ISBN: 978-1259631115

15th edition

Authors: John Price, M. David Haddock, Michael Farina

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