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Week 5

Correlation and Regression

1. Create a correlation table for the variables in our data set. (Use analysis ToolPak or S
a.
Reviewing the data levels from week 1, what variables can be used in a Pea
From my understanding, I would have to say that pairs and sets of variables
b. Place table here (C8):
ID
ID
1
Salary
0.13
Compa
0.143306
Midpoint
0.12015
Age
-0.150667
Performan 0.091679
Service
0.010039
Gender -0.062366
Raise
0.163599
Degree
0.131662

Salary

Compa

Midpoint

1
0.61647174
0.988971783
0.543579688
0.151306964
0.451704959
-0.368257872
-0.041421039
0.189389763

1
0.50065775
0.19521802
-0.1012709
0.18207462
0.08204811
-0.0427313
0.1393766

1
0.5671107
0.1917508
0.4711467
-0.428179
-0.028913
0.1767482

To compa?

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2

d.

Looking at the above correlations - both significant or not - are there any su
mean any relationships you expected to be meaningful and are not and vice

e.

Does this help us answer our equal pay for equal work question?

Below is a regression analysis for salary being predicted/explained by the o
age, performance rating, service, gender, and degree variables. (Note: sinc
expressing an employee’s salary, we do not want to have both used in the s
Plase interpret the findings.
Ho: The regression equation is not significant.
Ha: The regression equation is significant.
Ho: The regression coefficient for each variable is not significant
Ha: The regression coefficient for each variable is significant
Sal
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.9915590747
R Square 0.9831893985
Adjusted R Square 0.9808437332

they are considere Interpretation: For the Regression as a whole: What is the value of the F statistic: What is the p-value associated with this value: Is the p-value <0. .065197212 -0. and interpret your findings Note: be sure to include the appropriate hypothesis statements.2755334143 0.Standard Error Observations 2.420337212 0.1382881 Age -0.48353882 Midpoint 1.7998023048 0.06279828 49 18066 Standard Coefficients Error t Stat Intercept -1.0843369821 -0.81158528 Degree 0.70032613 7.299674 2960. who gets paid more with all other things being equal? How do we know? <1 point> 3 Perform a regression analysis using compa as the dependent variable and th variables as used in question 2.6183676583 -0.6407111 Service -0.05? Do you reject or not reject the null hypothesis: What does this decision mean for our equal pay question: For each of the coefficients: What is the coefficient's p-value for each of the variables: Is the p-value < 0.05? Do you reject or not reject each null hypothesis: What are the coefficients for the significant variables? Using only the significant variables. Show the result.8608443176 2.6575925726 50 ANOVA df Regression Residual Total SS MS 6 17762.07098479 Performace Rating -0.0344950678 -1.7496212123 3.0319023509 38.0046280102 0.0565964405 0.3445019 Note: since Gender and Degree are expressed as 0 and 1.38328 43 303.503935 Gender 2.2167010505 0. what is the equation? Is gender a significant factor in salary: If so.0425003573 0.

05? .Regression hypotheses Ho: Ha: Coefficient hyhpotheses (one to stand for all the separate variables) Ho: Ha: Place D94 in output box.05? Do you reject or not reject the null hypothesis: What does this decision mean for our equal pay question: For each of the coefficients: What is the coefficient's p-value for each of the variables: Is the p-value < 0. Interpretation: For the Regression as a whole: What is the value of the F statistic: What is the p-value associated with this value: Is the p-value < 0.

what is the equation? Is gender a significant factor in compa: If so. Do we have an answer to the question of are males and females paid equall If so. who gets paid more with all other things being equal? How do we know? <1 point> 4 Based on all of your results to date.Do you reject or not reject each null hypothesis: What are the coefficients for the significant variables? Using only the significant variables.salary or comp What is most interesting or surprising about the results we got doing the ana <2 points> 5 Why did the single factor tests and analysis (such as t and single factor ANO What outcomes in your life or work might benefit from a multiple regressio . which gender gets paid more? How do we know? Which is the best variable to use in analyzing pay practices .

127321 Gender 1 0.0442592341 cant or not .) e is not significant e is significant Note: technically we have one for each input variable.391757 -0.1027869 -0.18373755 1 0.13923841 0.are there any surprises -by that I ningful and are not and vice-versa? al work question? predicted/explained by the other variables in our sample (Midpoint.673659763 0.15044248 -0.061946903 0.) ariables can be used in a Pearson's Correlation table (which is what Excel produces)? at pairs and sets of variables are what Pearson's Correlation seems to be mainly used.04 Raise 1 0.56513321 -0.0675535678 0.(Use analysis ToolPak or StatPlus:mac LE function Correlation. (Note: since salary and compa are different ways of nt to have both used in the same regression.225700759 1 -0. Degree 1 .028267316 0. degree variables. Listing it this way to save space. Age Performance Rating Service 1 0.1804269 -0.

66416E-035 1.6311664899 -9.1523638283 1.0073966188 0.8884884833 s 0 and 1.15161113 1.1523638283 1.2125820912 0.3374216547 1.3374216547 1.684279192 4.1361107191 0.0129694936 -0.6168793519 -0.547512618 8.1268546987 0. esis statements.0% 0.9437389875 -0. Service Gender .547512618 -9.2125820912 0.1268546987 -0.1261623747 0.1081531819 -0.684279192 4.732148119 -1.812152E-036 P-value Lower 95% Upper 95% Lower 95. Rat.0467550427 5.1275813765 -0.2810382727 1.156395232 0. and interpret your findings by answering the same questions. Perf.0467550427 5. they are considered dummy variables and can be used in a multiple regression equation.1275813765 0. Intercept Midpoint Age Salary = he dependent variable and the same independent t.1361107191 0.F Significance F 419.0% Upper 95.2810382727 0.1261623747 0.0129694936 0.8884884833 -1.156395232 0.

Rat.e separate variables) Intercept Midpoint Age Perf. Service Gender .

salary or compa? Why? e results we got doing the analysis during the last 5 weeks? ch as t and single factor ANOVA tests on salary equality) not provide a complete answer to our salary equality question? efit from a multiple regression examination rather than a simpler one variable test? .Compa = ales and females paid equally for equal work? ay practices .

.

Degree .

Degree .

ry equality question? .

0289134052 -0.1893897627 0.157 1.1393765984 9 21 29 77 76 72 1.043 1.salary divided by midpoint ↓ Used the Correlation function.3 5.5 6.5 4.1392384074 1 0.096 1.956 1.067554 1 0.7 4.1820746201 Gender -0.020 1.3917569882 -0. Not sure if that’s right or not.043 1.8 5.140 1.6 4.9 4.5 4.5671106636 1 0.6 4.0414210394 -0.145 1.129 1.183738 1 -0.7 3.000 1.140 1.157 1.6 4 6.9 3.3 3.903 0.122 0.149 1.4 1 1 0 M M M F F F Note: to simplfy the analysis.043 1.7 3.000 1.7 4. 1 = female Raise – percent of last raise Degree (0= BS\BA 1 = MS) Compa .061947 0.043 1.6 4. ID Salary Compa Midpoint Age Performanc e Rating Service Gender Raise Degree Gender1 Grade 8 10 11 14 15 23 26 31 35 36 37 42 3 18 20 39 7 23 22 23 24 24 23 24 24 24 23 22 24 34 36 34 35 41 1.5 5.5651332094 0.1273210212 0.044259 Degree 1 .134 1.043 1.See comments at the right of the data set.043 1.161 1.210 1.000 0.150442 -0.052 1.903 1.086 0.1299998 1 Compa 0.8 4.187 1.2 3 5.043 1.4 5.956 1.870 0.0623663 -0.2 3.074 67 67 67 49 43 52 100 95 95 10 13 5 0 0 0 4 6.119 1.1506667 0.0427312752 Degree 0.3 6.5006577478 Age -0.0916791 0.1635993 -0. but would not allow me to add the last 2 rows.028267 0.1952180203 Performanc 0.979 1.0820481108 Raise 0.5 5.052 1.1433062 0.096 1.4517049594 0.000 0.1012708642 Service 0.1513069638 -0.1917507686 0.9 5.149 1.102787 -0.982 1.134 40 48 48 48 57 57 67 67 23 23 23 31 31 31 40 40 40 48 48 57 57 57 57 57 57 57 57 57 57 67 30 48 30 36 27 34 44 42 32 41 24 52 25 26 44 35 25 36 45 34 42 52 35 45 45 39 37 41 38 36 100 65 75 95 55 90 95 95 85 70 90 80 95 80 90 80 80 90 90 85 100 95 90 95 90 75 95 95 80 70 2 6 9 8 3 11 9 20 1 4 2 7 4 2 4 7 5 16 18 8 16 22 9 11 16 20 5 21 12 12 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4.4281787613 -0. we will assume that jobs within each grade comprise equal work.0100389 0.5435796876 0.2 3.7 5.225701 1 -0.9 5. The column labels in the table mean: ID – Employee sample number Age – Age in years Service – Years of service (rounded) Midpoint – salary grade midpoint Grade – job/pay grade Gender1 (Male or Female) Salary – Salary in thousands Performance Rating – Appraisal rating (Employee evaluation score) Gender: 0 = male.050 1.6164717402 1 Midpoint 0.052 1.025 23 23 23 23 23 23 23 23 23 23 23 23 31 31 31 31 40 32 30 41 32 32 36 22 29 23 27 22 32 30 31 44 27 32 90 80 100 90 80 65 95 60 90 75 95 100 75 80 70 90 100 9 7 19 12 8 6 2 4 4 3 2 8 5 11 16 6 8 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 5.075 0.043 1.000 1.8 3.017 1.6 5.3 4.04 0.087 1. Midpoint Age Performance Rating Service Gender Raise 1 0.1201504 0.3 4.8 6 4.6 4.1767482096 -0.9 5.3 6.3 5.5 5.5 4.7 3.7 0 0 0 0 0 1 1 0 1 1 1 0 0 1 1 1 0 F F F F F F F F F F F F F F F F F A A A A A A A A A A A A B B B B C The ongoing question that the weekly assignments will focus on is: Are males and females paid the same for equal work (under the Equal Pay Act)? 13 22 24 45 17 48 28 43 19 25 40 2 32 34 16 27 41 5 30 1 4 12 33 38 44 46 47 49 50 6 42 57 50 55 69 65 75 77 24 24 25 27 28 28 47 40 43 47 49 58 66 60 64 56 60 65 62 60 66 76 1.67366 0.3 5.4711467004 0.9 5.1804268525 0.5 1 0 1 0 0 1 1 1 1 0 0 0 0 1 0 1 0 1 0 0 1 0 1 0 1 1 1 0 0 1 F F F F F F F F M M M M M M M M M M M M M M M M M M M M M M C D D D E E F F A A A B B B C C C D D E E E E E E E E E E F ID Salary Compa ID 1 Salary 0.9889717827 0.041 1.8 5.175 1.2 5.368257872 0.1316622 0.

870 0.041 1.000 1.145 1.161 1.129 1.903 1.043 1.017 1.096 1.000 0.000 1.052 1.043 1.000 0.956 1.096 1.119 1.903 0.025 1.210 1.020 1.979 1.050 1.000 1.ID Salary Compa Midpoint Age Performanc e Rating Service Gender 8 10 11 14 15 23 26 31 35 36 37 42 3 18 20 39 7 13 22 24 45 17 48 28 43 19 25 40 2 32 34 16 27 41 5 30 1 4 12 33 23 22 23 24 24 23 24 24 24 23 22 24 34 36 34 35 41 42 57 50 55 69 65 75 77 24 24 25 27 28 28 47 40 43 47 49 58 66 60 64 1.075 0.140 1.043 1.043 1.043 1.157 1.043 1.122 23 23 23 23 23 23 23 23 23 23 23 23 31 31 31 31 40 40 48 48 48 57 57 67 67 23 23 23 31 31 31 40 40 40 48 48 57 57 57 57 32 30 41 32 32 36 22 29 23 27 22 32 30 31 44 27 32 30 48 30 36 27 34 44 42 32 41 24 52 25 26 44 35 25 36 45 34 42 52 35 90 80 100 90 80 65 95 60 90 75 95 100 75 80 70 90 100 100 65 75 95 55 90 95 95 85 70 90 80 95 80 90 80 80 90 90 85 100 95 90 9 7 19 12 8 6 2 4 4 3 2 8 5 11 16 6 8 2 6 9 8 3 11 9 20 1 4 2 7 4 2 4 7 5 16 18 8 16 22 9 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 .086 0.043 1.187 1.149 1.043 1.956 1.175 1.

134 1.052 1.149 1.052 1.982 1.087 1.134 1.38 44 46 47 49 50 6 9 21 29 56 60 65 62 60 66 76 77 76 72 0.140 1.074 57 57 57 57 57 57 67 67 67 67 45 45 39 37 41 38 36 49 43 52 95 90 75 95 95 80 70 100 95 95 11 16 20 5 21 12 12 10 13 5 0 0 0 0 0 0 0 0 0 0 .157 1.

143 0.8 6 4.9 3.428 Raise 0.5 5.501 Midpoint 0.3 5.7 3.5 4.143 0.406 0.000 Compa 0.334 0.219 .296 0.151 -0.001 0.082 -0.6 4 6.2 5.989 Compa 0.484 0.130 0.000 0.182 0.195 0.7 4.5 5.164 -0.527 0.177 p Values ID Salary Compa Midpoint Salary 0.6 5.989 0.7 3.768 0.188 0.9 4.9 5.945 0.000 Age 0.7 4.8 4.3 5.321 0.120 0.256 0.9 5.139 0.010 0.3 4.9 5.842 Degree 0.7 3.775 0.544 0.667 0.8 5.000 Age -0.4 5.000 0.294 0.009 0.3 6.206 0.5 Degree 0 0 0 0 0 1 1 0 1 1 1 0 0 1 1 1 0 1 0 1 0 0 1 1 1 1 0 0 0 0 1 0 1 0 1 0 0 1 0 1 CORREL ID Salary Compa Midpoint ID 1.501 1.571 0.2 3 5.368 0.3 4.000 0.362 0.7 5.3 6.002 Raise 0.616 0.452 0.130 1.151 0.8 5.062 -0.8 3.6 4.092 0.000 0.368 0.182 Service 0.174 0.041 -0.120 Salary 0.7 4.567 Performanc 0.5 4.000 Performanc 0.000 Midpoint 0.000 0.189 0.001 Gender 0.3 3.029 Degree 0.000 0.471 Gender -0.616 1.000 0.132 0.6 4.192 Service 0.101 0.043 -0.2 3.Raise 5.

6 4.5 4 6.3 5.5 5.4 0 1 1 1 0 0 1 1 1 0 .2 3.6 4.4.9 5.5 6.

184 0.151 0.294 0.000 0.000 -0.297 0.192 0.101 0.000 0.202 0.334 0.044 1.206 0.000 0.471 -0.040 -0.188 0.132 0.082 -0.219 0.783 0.139 0.392 -0.000 0.571 0.226 -0.000 0.001 0.043 0.565 0.115 0.783 0.189 0.392 -0.775 0.674 0.544 0.378 0.150 0.669 0.062 0.000 -0.565 -0.484 0.000 Age PerformancService Gender Raise Degree 0.010 -0.000 0.335 0.641 0.842 0.115 0.174 0.674 0.210 0.127 0.226 1.002 0.210 0.040 0.127 0.177 1.151 0.180 -0.028 -0.202 0.768 0.182 0.000 0.478 0.335 0.845 0.000 0.001 0.164 0.760 0.062 0.150 -0.068 0.180 0.669 0.297 0.028 0.Age PerformancService Gender Raise Degree -0.062 0.041 0.378 0.009 0.103 0.044 -0.029 0.195 -0.478 0.092 0.760 .068 1.103 -0.005 0.184 1.000 0.139 1.452 -0.641 0.567 0.005 0.368 -0.182 0.139 0.428 -0.845 0.