12.107 You have been hired as a consultant to analyze the salary structure of Energy Futures, Inc., a firm that produces designs for solar energy applications.

The company has operated for a number of years, and in recent years there have been an increasing number of complaints that the salaries paid to various workers.

You have been provided data in the file Salary Study, whose variables are described in the Chapter 12 appendix. Your task is to determine the relationship between the various measures for each employee and the salary paid using a multiple regression analysis.

One particular complaint of great concern to the management is that female workers are paid less than male workers with the same experience and skill level. Test the hypothesis that the actual salary paid female workers and the rate of change in female salaries as a function of experience is less than the rate of change for male salaries as a function of experience. Your hypothesis test should be set up to provide strong evidence of discrimination against females if it exists. The test should be made conditional on the other significant predictor variables in your model.

12.108 Use the data in the data file named Student GPA, which is described in the Chapter 11 appendix, to develop a model to predict a student’s grade point average in economics. Begin with the variables ACT scores, gender, and HSpct.

a. Use appropriate statistical procedures to choose a subset of statistically significant predictor variables.

Describe your strategy and carefully define your final model.

b. Discuss how this model might be used as part of the college’s decision process to select students for admission.