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

Question: Regression Equation for Predictions

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

Find the regression equation (round to one significant digit) using the salary and age data. Use variable y to denote salary and variable x to denote age. Use the equation to predict the salary for someone who is 40 years old.

Age	Gender	Country	Race/Ethnicity	Department	Position	Management Level	Salary
63	Male	United States	White	Engineering	Engineering Program Manager III	Employee	$214,037
65	Male	United States	White	Solution Engineers	Principal Solution Engineer	Employee	$182,423
50	Male	United States	White	Engineering	Senior Director Engineering	Senior Director	$239,123
59	Male	United States	White	Strategic Growth	Vice President Corporate Development	Vice President	$410,714
63	Female	United States	White	Field Sales	Regional Account Manager	Employee	$181,848
52	Male	United States	White	Technical Support	Principal II Technical Support Engineer	Employee	$141,080
43	Female	United States	White	Technical Support	Senior Director Technical Support	Senior Director	$215,776
51	Female	United States	Black or African American	Technical Support	Senior Technical Support Engineer	Employee	$89,818
50	Male	United States	Asian	IT	Senior Director Systems Programming Management	Senior Director	$253,607
52	Female	United States	White	Human Resources	SVP Human Resources	Senior Vice President	$420,420
39	Female	United States	White	Renewals	Regional Vice President Renewal Sales	Regional Vice President	$255,771
45	Female	United States	White	Marketing	Senior Web Editor	Employee	$99,218
45	Male	United States	White	Finance	Vice President & Controller	Vice President	$358,820
43	Male	United States	White	Engineering	Staff Software Development Engineer	Employee	$153,246
40	Male	United States	White	Solution Engineers	Senior Solution Engineer	Employee	$158,916
52	Male	United States	White	Solution Engineers	RFP Response Writer	Employee	$103,920
47	Female	United States	White	Product Management	Principal Product Management	Employee	$211,214
47	Male	United States	White	Technical Support	Senior Technical Support Engineer	Employee	$77,087
60	Female	United States	White	IT	Programmer/Analyst	Employee	$126,735
65	Male	United States	White	Field Sales	Major Account Manager	Employee	$273,900
60	Male	United States	White	Field Sales	Major Account Manager	Employee	$270,900
50	Female	United States	White	Finance	Director Accounting	Director	$209,120
35	Male	United States	Asian	Technical Support	Senior Technical Support Engineer	Employee	$80,250
38	Female	United States	Asian	Technical Support	Principal I Technical Support Engineer	Employee	$91,662
42	Male	United States	Asian	Technical Support	Senior Technical Support Engineer	Employee	$98,449
67	Female	United States	White	Engineering	Staff Software Development Engineer	Employee	$161,172
59	Male	United States	White	Field Sales	Major Account Manager	Employee	$273,900
47	Male	United States	White	Field Sales	Major Account Manager	Employee	$283,900
34	Male	United States	White	Technical Support	Senior Technical Support Engineer	Employee	$81,648
37	Female	United States	White	Finance	Senior Director Accounting	Senior Director	$237,760
51	Male	United States	Asian	Product Management	Director Product Management	Director	$234,463
51	Female	United States	White	Marketing	Vice President Product Marketing	Vice President	$349,040
40	Female	United States	Asian	Engineering	Staff Software Development Engineer	Employee	$152,569
58	Male	United States	White	Solution Engineers	Principal Solution Engineer	Employee	$244,400
47	Male	United States	White	Field Sales	Major Account Manager	Employee	$260,100
62	Male	United States	White	Solution Engineers	Principal Solution Engineer	Employee	$160,900
49	Male	United States	White	Finance	Vice President Finance	Vice President	$308,420
30	Male	United States	Asian	Technical Support	Senior Technical Support Engineer	Employee	$73,639
49	Female	United States	White	Solution Engineers	Senior Solution Engineer	Employee	$186,900
49	Male	United States	White	Solution Engineers	Principal Solution Engineer	Employee	$206,900
42	Female	United States	White	IT	Director Business Applications	Director	$207,535
57	Male	United States	White	Field Sales	Vice President Sales	Vice President	$590,900
42	Male	United States	White	Field Sales	Major Account Manager	Employee	$262,100
51	Male	United States	White	Field Sales	Major Account Manager	Employee	$273,420
49	Female	United States	White	Sales	Revenue Enablement Coordinator	Employee	$65,296
36	Male	United States	White	Field Sales	Major Account Manager	Employee	$284,900
60	Male	United States	White	Field Sales	Major Account Manager	Employee	$284,900
64	Female	United States	White	Solution Engineers	Senior Solution Engineer	Employee	$167,100
53	Male	United States	White	Field Sales	Major Account Manager	Employee	$250,420
53	Female	United States	White	Alliances	Vice President Global Alliances	Vice President	$382,170
64	Male	United States	White	Field Sales	Strategic Account Manager	Employee	$301,300
59	Male	United States	White	Solution Engineers	Business Value Advisor	Employee	$311,874
33	Male	United States	White	Solution Engineers	Solution Architect	Employee	$175,250
49	Male	United States	Black or African American	Professional Services	Senior Services Consultant	Employee	$143,849
51	Male	United States	White	Solution Engineers	Business Value Advisor	Employee	$196,400
52	Male	United States	White	Professional Services	Principal I Services Consultant	Employee	$142,005
60	Male	United States	White	Field Sales	Major Account Manager	Employee	$250,900
40	Male	United States	White	Engineering	Senior Software Development Engineer	Employee	$137,394
44	Female	United States	White	Sales	Director Sales Operations	Director	$258,900
65	Male	United States	Asian	Customer Success	Director Consulting Services	Director	$282,324
51	Female	United States	White	Field Sales	Major Account Manager	Employee	$200,900
31	Female	United States	Asian	Professional Services	Services Project Manager II	Employee	$105,446
49	Male	United States	White	Professional Services	Principal I Services Consultant	Employee	$140,155
44	Female	United States	White	Professional Services	Manager Consulting Services	Manager	$158,701
69	Male	United States	White	Professional Services	Services Project Manager II	Employee	$162,338
50	Female	United States	White	Finance	Credit/Collections Support Specialist III	Employee	$69,462
49	Male	United States	White	Field Sales	Major Account Manager	Employee	$274,500
43	Male	United States	White	Solution Engineers	Senior Solution Engineer	Employee	$162,821
43	Male	United States	Hispanic or Latino	Customer Success	Director Customer Success	Director	$238,900
38	Male	United States	White	Solution Engineers	Senior Solution Engineer	Employee	$172,901
53	Male	United States	White	Solution Engineers	Senior Solution Engineer	Employee	$186,430
32	Female	United States	Asian	Finance	Senior Accountant	Employee	$79,411
45	Female	United States	White	Finance	Senior Director Financial Planning/Analysis	Senior Director	$238,320
60	Female	United States	White	Finance	Credit/Collections Support Specialist II	Employee	$59,161
38	Female	United States	White	Alliances	Channel Account Manager IV	Employee	$138,720
33	Male	United States	White	Field Sales	Major Account Manager	Employee	$250,420
50	Male	United States	Black or African American	Field Sales	Major Account Manager	Employee	$284,400
35	Female	United States	White	Finance	Payroll Analyst/Administrator	Employee	$61,102
56	Female	United States	White	Finance	Accounting Support Specialist II	Employee	$36,295
55	Male	United States	White	IT	Vice President Information Technology	Vice President	$420,420
44	Female	United States	White	IT	Senior Manager Business Applications	Senior Manager	$148,312
40	Female	United States	White	Finance	Manager Accounting	Manager	$133,190
52	Female	United States	White	IT	Senior Desktop Support Technician	Employee	$83,709
33	Female	United States	White	Human Resources	Director HR Business	Director	$170,420
29	Female	United States	White	Customer Success	Customer Success Manager	Employee	$102,720
38	Female	United States	Asian	Engineering	Senior Software Development Engineer	Employee	$142,115
46	Male	United States	White	Field Sales	Major Account Manager	Employee	$300,900
32	Female	United States	Asian	Finance	Senior Accountant	Employee	$93,045
33	Male	United States	Asian	Engineering	Senior Software Development Engineer	Employee	$143,093
37	Male	United States	White	Solution Engineers	Solution Engineer	Employee	$142,900
41	Male	United States	White	Technical Support	Senior Technical Support Engineer	Employee	$75,043
45	Female	United States	White	Finance	Credit/Collections Support Specialist III	Employee	$67,079
36	Male	United States	White	Finance	Senior Manager Accounting	Senior Manager	$134,997
43	Female	United States	White	Human Resources	Director Employee Communications	Director	$190,745
39	Female	United States	White	Professional Services	Senior Services Consultant	Employee	$114,284
29	Male	United States	Asian	Engineering	Software Development Engineer	Employee	$113,995
35	Male	United States	Asian	Engineering	Staff Software Development Engineer	Employee	$146,412
25	Male	United States	Asian	Engineering	Software Development Engineer	Employee	$98,752
28	Male	United States	Asian	Engineering	Software Development Engineer	Employee	$102,143
38	Male	United States	White	Solution Engineers	Senior Solution Engineer	Employee	$215,000
64	Male	United States	White	Field Sales	Major Account Manager	Employee	$270,900
42	Male	United States	White	Professional Services	Services Consultant	Employee	$116,110
49	Male	United States	Asian	Engineering	Director Software Development Engineering	Director	$270,634
35	Male	United States	Asian	Technical Support	Technical Support Engineer	Employee	$93,197
62	Male	United States	White	Engineering	Data Researcher	Employee	$84,435
42	Male	United States	Asian	Product Management	Product Management Professional	Employee	$146,036
52	Male	United States	White	Professional Services	Services Consultant	Employee	$128,073
48	Female	United States	White	Field Sales	Regional Vice President Field Sales	Regional Vice President	$360,900
36	Male	United States	Asian	Engineering	Senior Software Development Engineer	Employee	$129,302
31	Female	United States	White	Product Management	Senior UX Designer	Employee	$113,720
49	Female	United States	White	Finance	Executive Assistant	Employee	$131,320
48	Female	United States	White	Finance	Credit/Collections Support Specialist III	Employee	$58,711
38	Female	United States	White	Finance	Senior Accountant	Employee	$97,280
49	Female	United States	Asian	IT	Senior Manager IT Operations	Senior Manager	$138,955
46	Female	United States	White	Marketing	Event Marketing Manager	Manager	$111,916
38	Female	United States	Asian	Finance	Sales Compensation Analyst	Employee	$86,493
60	Male	United States	White	Solution Engineers	Business Value Advisor	Employee	$233,400
57	Female	United States	White	Technical Support	Vice President Technical Support	Vice President	$241,570
32	Male	United States	Asian	IT	Senior Desktop Support Specialist	Employee	$70,666
49	Female	United States	White	Sales	Executive Assistant	Employee	$113,410
62	Male	United States	White	Marketing	Senior Director Content	Senior Director	$188,208
33	Female	United States	White	Marketing	Senior Manager Marketing Channels and Operations	Senior Manager	$130,543
27	Female	United States	White	Marketing	Senior Digital Marketing Manager	Employee	$85,670
37	Male	United States	Two or More Races	Customer Success	Senior Services Consultant	Employee	$112,838
50	Female	United States	White	Customer Success	Principal Technical Account Manager	Employee	$125,200
33	Male	United States	Two or More Races	Engineering	Senior Manager Site Reliability Engineering	Senior Manager	$184,555
30	Female	United States	White	Marketing	Senior Corporate Communications Specialist	Employee	$96,270
26	Male	United States	Black or African American	Sales	Business Development Specialist	Employee	$63,554
58	Male	United States	White	Human Resources	Vice President Human Capital	Vice President	$317,982
26	Male	United States	White	IT	Assoc Programmer/Analyst	Employee	$66,035
52	Female	United States	White	Customer Success	Customer Success Manager	Employee	$115,920
24	Female	United States	White	Marketing	Partner Marketing Manager	Employee	$56,450
44	Male	United States	White	Field Sales	Major Account Manager	Employee	$234,500
29	Female	United States	Asian	Technical Support	Technical Support Engineer	Employee	$72,279
40	Female	United States	White	Marketing	Executive Assistant	Employee	$105,756
56	Male	United States	Asian	IT	Desktop Support Technician	Employee	$62,735
48	Male	United States	White	Human Resources	Director Recruiting	Director	$220,358
33	Female	United States	White	Human Resources	Senior HR Business Partner	Employee	$130,370
35	Female	United States	White	Marketing	Senior Graphics Designer	Employee	$86,660
38	Female	United States	White	Marketing	Product Marketing Manager	Employee	$125,820
30	Male	United States	Asian	Field Sales	Enterprise Regional Account Manager	Employee	$130,420
30	Female	United States	White	Human Resources	Senior Recruiter	Employee	$88,420
31	Female	United States	White	Finance	Senior Financial Planner/Analyst	Employee	$101,092
34	Male	United States	White	Customer Success	Customer Success Manager	Employee	$84,735
28	Female	United States	Asian	Engineering	Software Development Engineer	Employee	$98,752
40	Female	United States	White	Sales	Revenue Enablement Manager	Employee	$157,959
33	Male	United States	Asian	Technical Support	Technical Support Engineer	Employee	$72,146
29	Female	United States	White	Finance	Senior Accountant	Employee	$91,024
58	Male	United States	White	Field Sales	Major Account Manager	Employee	$280,900
41	Male	United States	White	Field Sales	Major Account Manager	Employee	$270,900
39	Female	United States	White	Sales	Revenue Enablement Manager	Employee	$137,480
24	Male	United States	White	Finance	Sales Compensation Analyst	Employee	$55,900
48	Male	United States	White	Field Sales	Major Account Manager	Employee	$260,900
53	Male	United States	White	Field Sales	Major Account Manager	Employee	$280,900
59	Male	United States	White	Field Sales	Major Account Manager	Employee	$270,900
51	Female	United States	White	Facilities	Receptionist II	Employee	$21,584
35	Female	United States	White	Finance	Accounting Support Specialist II	Employee	$58,192
57	Male	United States	White	Field Sales	Major Account Manager	Employee	$285,900
28	Male	United States	Two or More Races	Customer Success	Customer Success Manager	Employee	$104,150
31	Male	United States	Asian	Product Management	UX Designer	Employee	$102,192
55	Male	United States	White	Field Sales	Major Account Manager	Employee	$280,900
54	Male	United States	White	Field Sales	Major Account Manager	Employee	$280,900
56	Female	United States	White	Product Management	Senior Vice President Product Management	Senior Vice President	$428,400
53	Male	United States	White	Field Sales	Major Account Manager	Employee	$280,900
39	Female	United States	Asian	Product Management	Vice President Product Management	Vice President	$322,820
55	Male	United States	White	Field Sales	Major Account Manager	Employee	$274,400
34	Female	United States	White	Finance	Senior Manager Accounting	Senior Manager	$163,720
46	Female	United States	White	Professional Services	Services Project Manager	Employee	$115,088
40	Female	United States	White	Field Sales	Major Account Manager	Employee	$280,900
56	Female	United States	Asian	Field Sales	Major Account Manager	Employee	$260,900
51	Male	United States	White	Finance	Vice President Corporate Development	Vice President	$354,620
36	Male	United States	Asian	Product Management	Senior Director Product Management	Senior Director	$316,525
49	Female	United States	Asian	Product Management	Senior Director Product Management	Senior Director	$238,400
25	Female	United States	White	Customer Success	Services Consultant	Employee	$74,025
37	Female	United States	White	Product Management	UX Designer	Employee	$132,900
54	Male	United States	White	Field Sales	Major Account Manager	Employee	$270,420
29	Male	United States	White	Solution Engineers	Senior Solution Engineer	Employee	$200,420
30	Male	United States	White	Solution Engineers	Solution Engineer	Employee	$155,420
28	Female	United States	Hispanic or Latino	Human Resources	Senior Recruiter	Employee	$80,420
62	Male	United States	White	Field Sales	Major Account Manager	Employee	$260,420
35	Female	United States	White	Marketing	Content Specialist	Employee	$84,020
44	Female	United States	Hispanic or Latino	Marketing	Senior Director Demand Generation	Senior Director	$287,920
51	Male	United States	White	Field Sales	Major Account Manager	Employee	$280,420
28	Male	United States	Asian	Engineering	Content Engineer	Employee	$88,420
33	Male	United States	White	Finance	Manager Accounting	Manager	$121,420
63	Female	United States	White	Professional Services	Manager Consulting Services	Manager	$180,420
26	Male	United States	White	Field Sales	Regional Account Manager	Employee	$180,420
36	Female	United States	Hispanic or Latino	Product Management	Senior UX Designer	Employee	$127,420
25	Male	United States	Asian	Engineering	Content Engineer	Employee	$88,420
31	Female	United States	White	Marketing	Project Manager Creative	Employee	$77,420
47	Male	United States	Hispanic or Latino	Customer Success	Customer Success Manager	Employee	$115,920
22	Male	United States	White	Sales	Business Development Specialist	Employee	$60,420
40	Male	United States	White	Field Sales	Major Account Manager	Employee	$280,420
43	Male	United States	White	Field Sales	Major Account Manager	Employee	$300,420
25	Male	United States	White	Sales	Business Development Specialist	Employee	$60,420
46	Male	United States	White	Field Sales	Major Account Manager	Employee	$300,420
24	Male	United States	White	Sales	Business Development Specialist	Employee	$60,420
44	Male	United States	White	Solution Engineers	Solution Engineer	Employee	$170,420
22	Male	United States	White	Technical Support	Technical Support Engineer	Employee	$60,920
28	Male	United States	White	Sales	Business Development Specialist	Employee	$60,420
26	Male	United States	White	Finance	Senior Financial Planner/Analyst	Employee	$95,420
25	Male	United States	Asian	Engineering	Content Engineer	Employee	$88,420
23	Male	United States	White	Sales	Business Development Specialist	Employee	$60,420
43	Male	United States	White	Field Sales	Major Account Manager	Employee	$300,420
22	Male	United States	White	Sales	Business Development Specialist	Employee	$60,420
30	Female	United States	White	Product Management	Senior UX Designer	Employee	$125,420
42	Male	United States	White	Field Sales	Major Account Manager	Employee	$280,420
46	Male	United States	White	Engineering	Vice President Engineering	Vice President	$399,152
40	Male	United States	White	Engineering	Senior Director Engineering	Senior Director	$270,151
41	Female	United States	Asian	Engineering	Director Software Development Engineering	Director	$232,170
33	Male	United States	White	Field Sales	Major Account Manager	Employee	$255,420
34	Male	United States	White	Technical Support	Senior Technical Support Engineer	Employee	$69,126
25	Female	United States	White	Product Management	Product Management Professional	Employee	$104,920
29	Male	United States	White	Solution Engineers	Senior Solution Engineer	Employee	$172,900
47	Male	United States	White	Technical Support	Senior Technical Support Engineer	Employee	$90,164
28	Female	United States	White	Customer Success	Customer Success Manager	Employee	$106,020
38	Male	United States	White	IT	Senior System Administrator	Employee	$104,920
43	Male	United States	White	Technical Support	Technical Support Engineer	Employee	$69,280
46	Male	United States	Black or African American	Professional Services	Senior Services Consultant	Employee	$136,406
45	Female	United States	White	IT	Senior Desktop Support Technician	Employee	$62,735
46	Male	United States	White	Professional Services	Senior Services Consultant	Employee	$117,900
32	Male	United States	White	Technical Support	Technical Support Engineer	Employee	$66,420
23	Male	United States	Hispanic or Latino	IT	Desktop Support Specialist	Employee	$50,420
36	Male	United States	Hispanic or Latino	Customer Success	Principal Technical Account Manager	Employee	$152,220
48	Male	United States	White	Solution Engineers	Solution Engineer	Employee	$200,420

Table A-6
n	= 0.05	= 0.01
4	0.95	0.99
5	0.878	0.959
6	0.811	0.917
7	0.754	0.875
8	0.707	0.834
9	0.666	0.798
10	0.632	0.765
11	0.602	0.735
12	0.576	0.708
13	0.553	0.684
13	0.553	0.684
14	0.532	0.661
15	0.514	0.641
16	0.497	0.623
17	0.482	0.606
18	0.468	0.59
19	0.456	0.575
20	0.444	0.561
25	0.396	0.505
30	0.361	0.463
35	0.335	0.43
40	0.312	0.402
45	0.294	0.378
50	0.279	0.361
60	0.254	0.33
70	0.236	0.305
80	0.22	0.286
90	0.207	0.269
100	0.196	0.256