Question: Hypothesis testing based on r (correlation)

Click the 'scenario' button below to review the topic and then answer the following question:

Description: A downloadable spreadsheet named CV of r was provided in the assessment instructions for you to use for this question. In some workplaces, the longer someone has been working within an organization, the better the pay is. Although seniority provides a way to reward long-serving employees, critics argue that it hinders recruitment. Jane, the CPO, wants to know if XYZ has a seniority pay system.

Question:

1. Based on the salary and age data in the spreadsheet, find the value of the linear correlation coefficient r, and the p-value and the critical value of r using alpha = 0.05. Determine whether there is sufficient evidence to support the claim of linear correlation between age and salary.

2. Could you tell us more about what the correct value of correlation coefficient is, and the correct p-value?

Scenario : Inferential Stats

The recent pandemic greatly affected the working environment. According to a survey, post-pandemic employees are more than ever demanding changes to policies and benefits in the workplace.

Your organization, XYZ Company, notes several hurdles to attracting and retaining staff in the post-pandemic climate. One example is the employer's inability to adjust to the remote work arrangement, and another is a lack of pay equity commitment.

In keeping with XYZ Company's goal to treat employees well, management is looking for feedback to measure the company's performance as the employer of choice.

You work as the Manager of Workforce Analytics within the Human Resources department. The company is growing rapidly, and your boss, Jane, who is the Chief People Officer (CPO), wants to make sure that the company is treating its employees equitably. She is analysis-driven, so she taps you to work on several projects to uncover any potential issues. Her objectives are to:

1. Describe the current state of salary data using the measures of central tendency and variability.
2. Give a point estimate and construct a confidence interval of the number of employees who want to work remotely.
3. Conduct a hypothesis test from two populations, male employees and female employees, of a claim that they have the same mean salary.
4. Test a claim that employee pay is on par with industry standards with a hypothesis test from one population.
5. Apply a normal distribution to review the current dental insurance plan expenses
6. Identify any correlation between seniority and pay
7. Conduct a regression analysis between employee age and salary