The human resources manager of DataCom, Inc., wants to predict the annual salaries of given employees using the potential explanatory variables in the file P10_05.xlsx.
a. Estimate an appropriate multiple regression equation to predict the annual salary of a given DataCom employee using all of the data in columns C–H.
b. Interpret the estimated regression coefficients.
c. According to the estimated regression model, is there a difference between the mean salaries earned by male and female employees at DataCom? If so, how large is the difference? According to your equation, does this difference depend on the values of the other explanatory variables? Explain.
d. According to the estimated regression model, is there a difference between the mean salaries earned by employees in the sales department and those in the advertising department at DataCom? If so, how large is the difference? According to your equation, does this difference depend on the values of the other explanatory variables? Explain.
e. According to the estimated regression model, in which department is DataCom employees paid the highest mean salary? In which department are DataCom employees paid the lowest mean salary?
f. Given the estimated regression model, predict the annual salary of a female employee who served in a similar department at another company for 10 years prior to coming to work at DataCom. This woman, a graduate of a four-year collegiate business program, has been supervising 12 subordinates in the purchasing department since joining the organization five years ago.