Question
An HR department is interested in developing a model to explain mid-level manager compensation. They have a data set with the salary level (Comp) for
An HR department is interested in developing a model to explain mid-level manager compensation. They have a data set with the salary level (Comp) for 36 managers. Included is a measure of business unit profit (Profit), years of service (tears) , and an indicator that identifies managers with a graduate degree (Grad).
Build a regression model that predicts Comp from the 3 variables along with the interaction between Profit and Grad, and the interaction between Years and Grad.
Based on the results of this model, what is the average salary for a manager with 10 years of service, no graduate degree, and a business unity that earns 5,000 profit. (Enter your answer rounded to the nearest dollar)
Comp | Profit | Years | Grad |
118100 | 4500 | 37 | 1 |
90800 | 5400 | 5 | 1 |
79000 | 3600 | 28 | 0 |
115700 | 5800 | 3 | 1 |
97100 | 4200 | 11 | 1 |
51600 | 3500 | 10 | 0 |
88400 | 2200 | 27 | 1 |
107600 | 3500 | 22 | 1 |
75100 | 4500 | 23 | 0 |
60500 | 2500 | 4 | 1 |
69800 | 2200 | 5 | 1 |
69300 | 3000 | 8 | 1 |
127400 | 5200 | 33 | 1 |
82200 | 5600 | 14 | 0 |
123300 | 4700 | 19 | 1 |
50800 | 4100 | 7 | 0 |
60500 | 2200 | 33 | 0 |
71100 | 4500 | 23 | 0 |
50100 | 2300 | 20 | 0 |
87600 | 4400 | 20 | 1 |
68300 | 2600 | 9 | 1 |
90700 | 5700 | 18 | 0 |
81600 | 5600 | 26 | 0 |
68200 | 3800 | 22 | 0 |
80600 | 4900 | 24 | 0 |
69500 | 2600 | 3 | 1 |
97200 | 5800 | 30 | 0 |
93600 | 5200 | 32 | 0 |
75900 | 2400 | 11 | 1 |
78500 | 3100 | 28 | 0 |
88100 | 2100 | 17 | 1 |
99500 | 4900 | 31 | 0 |
87700 | 5000 | 12 | 1 |
63000 | 3400 | 23 | 0 |
93200 | 4600 | 20 | 1 |
85000 | 4200 | 29 | 0 |
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