A group of researchers wanted to look at factors that affect

A group of researchers wanted to look at factors that affect current salary. They randomly selected individuals with providing information on current salary, beginning salary, previous experience (in months) when hired, and total years of education for a sample of 100 employees in a firm.

Compare the final equation with the first regression equation. What recommendations do you have about using the final equation? Give reasons for your answer.

Current Salary

Beginning Salary

Previous Experience (months)

Education (years)

$57,000

$27,000

144

15

$40,200

$18,750

36

16

$21,450

$12,000

381

12

$21,900

$13,200

190

8

$45,000

$21,000

138

15

$32,100

$13,500

67

15

$36,000

$18,750

114

15

$21,900

$9,750

0

12

$27,900

$12,750

115

15

$24,000

$13,500

244

12

$30,300

$16,500

143

16

$28,350

$12,000

26

8

$27,750

$14,250

34

15

$35,100

$16,800

137

15

$27,300

$13,500

66

12

$40,800

$15,000

24

12

$46,000

$14,250

48

15

$103,750

$27,510

70

16

$23,700

$13,500

359

15

$26,550

$14,250

61

15

$27,600

$15,000

75

12

$25,800

$15,000

143

12

$42,300

$26,250

126

16

$30,750

$15,000

451

8

$26,700

$12,900

18

12

$20,850

$12,000

163

12

$35,250

$15,000

54

15

$26,750

$15,000

55

15

$26,550

$13,050

11

12

$27,750

$12,000

11

12

$25,050

$12,750

123

16

$66,000

$47,490

150

16

$52,650

$19,500

20

16

$45,650

$23,250

55

16

$30,900

$15,000

25

15

$29,400

$16,500

24

15

$24,900

$11,250

0

12

$19,650

$10,950

11

12

$22,050

$10,950

9

12

$25,500

$12,000

11

12

$28,200

$12,750

19

15

$23,100

$11,250

13

12

$25,500

$11,400

9

12

$17,100

$10,200

0

8

$68,125

$32,490

29

18

$30,600

$15,750

460

12

$52,125

$27,480

221

19

$61,875

$36,750

199

19

$21,400

$11,000

18

8

$19,650

$11,250

5

12

$22,350

$11,250

5

12

$23,400

$11,250

18

12

$24,300

$10,950

8

12

$28,500

$11,250

4

12

$19,950

$11,250

8

12

$23,400

$11,250

0

12

$34,500

$17,250

3

16

$18,150

$10,950

0

12

$21,750

$12,450

318

8

$59,300

$33,850

270

12

$24,450

$14,250

117

12

$101,500

$60,600

140

16

$35,700

$16,500

72

12

$22,200

$16,500

7

12

$22,950

$13,950

22

15

$23,100

$12,000

228

12

$56,750

$30,000

15

16

$29,100

$12,750

375

17

$37,650

$15,750

132

12

$27,900

$13,500

32

12

$21,150

$12,000

159

8

$31,200

$15,750

155

12

$20,550

$11,250

154

12

$20,700

$11,250

2

12

$21,300

$11,250

3

12

$24,300

$15,000

121

12

$19,650

$13,950

133

12

$60,000

$32,490

17

17

$30,300

$15,750

55

15

$61,250

$33,000

9

19

$36,000

$19,500

21

19

$25,200

$18,750

344

8

$30,750

$15,000

56

12

$33,540

$15,750

47

12

$34,950

$20,250

55

16

$40,350

$16,500

80

15

$30,270

$15,750

80

12

$26,250

$16,050

264

8

$32,400

$15,000

64

15

$20,400

$11,250

0

12

$24,150

$12,750

96

8

$23,850

$13,500

122

15

$29,700

$13,500

26

12

$21,600

$13,500

228

8

$24,450

$15,750

87

12

$29,050

$17,000

86

15

$100,000

$44,100

128

16

$49,000

$20,550

86

15

$16,350

$10,200

163

12

$70,000

$21,750

19

16

Current Salary	Beginning Salary	Previous Experience (months)	Education (years)
$57,000	$27,000	144	15
$40,200	$18,750	36	16
$21,450	$12,000	381	12
$21,900	$13,200	190	8
$45,000	$21,000	138	15
$32,100	$13,500	67	15
$36,000	$18,750	114	15
$21,900	$9,750	0	12
$27,900	$12,750	115	15
$24,000	$13,500	244	12
$30,300	$16,500	143	16
$28,350	$12,000	26	8
$27,750	$14,250	34	15
$35,100	$16,800	137	15
$27,300	$13,500	66	12
$40,800	$15,000	24	12
$46,000	$14,250	48	15
$103,750	$27,510	70	16
$23,700	$13,500	359	15
$26,550	$14,250	61	15
$27,600	$15,000	75	12
$25,800	$15,000	143	12
$42,300	$26,250	126	16
$30,750	$15,000	451	8
$26,700	$12,900	18	12
$20,850	$12,000	163	12
$35,250	$15,000	54	15
$26,750	$15,000	55	15
$26,550	$13,050	11	12
$27,750	$12,000	11	12
$25,050	$12,750	123	16
$66,000	$47,490	150	16
$52,650	$19,500	20	16
$45,650	$23,250	55	16
$30,900	$15,000	25	15
$29,400	$16,500	24	15
$24,900	$11,250	0	12
$19,650	$10,950	11	12
$22,050	$10,950	9	12
$25,500	$12,000	11	12
$28,200	$12,750	19	15
$23,100	$11,250	13	12
$25,500	$11,400	9	12
$17,100	$10,200	0	8
$68,125	$32,490	29	18
$30,600	$15,750	460	12
$52,125	$27,480	221	19
$61,875	$36,750	199	19
$21,400	$11,000	18	8
$19,650	$11,250	5	12
$22,350	$11,250	5	12
$23,400	$11,250	18	12
$24,300	$10,950	8	12
$28,500	$11,250	4	12
$19,950	$11,250	8	12
$23,400	$11,250	0	12
$34,500	$17,250	3	16
$18,150	$10,950	0	12
$21,750	$12,450	318	8
$59,300	$33,850	270	12
$24,450	$14,250	117	12
$101,500	$60,600	140	16
$35,700	$16,500	72	12
$22,200	$16,500	7	12
$22,950	$13,950	22	15
$23,100	$12,000	228	12
$56,750	$30,000	15	16
$29,100	$12,750	375	17
$37,650	$15,750	132	12
$27,900	$13,500	32	12
$21,150	$12,000	159	8
$31,200	$15,750	155	12
$20,550	$11,250	154	12
$20,700	$11,250	2	12
$21,300	$11,250	3	12
$24,300	$15,000	121	12
$19,650	$13,950	133	12
$60,000	$32,490	17	17
$30,300	$15,750	55	15
$61,250	$33,000	9	19
$36,000	$19,500	21	19
$25,200	$18,750	344	8
$30,750	$15,000	56	12
$33,540	$15,750	47	12
$34,950	$20,250	55	16
$40,350	$16,500	80	15
$30,270	$15,750	80	12
$26,250	$16,050	264	8
$32,400	$15,000	64	15
$20,400	$11,250	0	12
$24,150	$12,750	96	8
$23,850	$13,500	122	15
$29,700	$13,500	26	12
$21,600	$13,500	228	8
$24,450	$15,750	87	12
$29,050	$17,000	86	15
$100,000	$44,100	128	16
$49,000	$20,550	86	15
$16,350	$10,200	163	12
$70,000	$21,750	19	16

Solution

Current Salary =-4,076.1839+1.7031*Beginning Salary-10.7273*Previous Experience (months)+746.1565*Education (years) =38024.11

Regression output				confidence interval
variables	coefficients	std. error	t (df=96)	p-value	95% lower	95% upper
Intercept	-4,076.1839	4,218.4445	-0.966	.3363	-12,449.7297	4,297.3620
Beginning Salary	1.7031	0.1136	14.997	6.72E-27	1.4777	1.9285
Previous Experience (months)	-10.7273	7.7898	-1.377	.1717	-26.1900	4.7354
Education (years)	746.1565	352.7443	2.115	.0370	45.9646	1,446.3485