Question

Your firm is interested in learning more about how its salaries relate to its employees’ tenure with the firm. it has collected the following data for 25 of its employees. employee number tenure (years)

Employee Number Tenure (Years) Salary ($)
1 15 $53,408
2 32 $77,230
3 14 $53,664
4 20 $55,647
5 25 $60,611
6 14 $51,991
7 28 $71,071
8 30 $69,189
9 28 $67,359
10 17 $50,978
11 14 $56,176
12 6 $38,865
13 21 $58,176
14 11 $52,101
15 14 $50,941
16 32 $73,964
17 29 $67,873
18 33 $73,860
19 27 $60,519
20 16 $48,474
21 26 $69,574
22 3 $34,594
23 14 $52,176
24 9 $56,444
25 14 $57,806

Answer 1

To analyze the relationship between salaries and tenure, calculate the correlation coefficient and create a scatter plot.

Step-by-step explanation:

The question is about analyzing the relationship between salaries and tenure for employees in a firm:

The provided data includes the tenure (in years) and salary ($) for 25 employees. To analyze this relationship, you can calculate the correlation coefficient between the tenure and salary variables.

Steps to Analyze the Data:

Organize the data to facilitate analysis, ideally in a spreadsheet.

Calculate descriptive statistics, such as the mean, median, mode, and standard deviation for both salary and tenure.

Create visual representations like graphs or scatter plots to identify trends and patterns.

Consider calculating the correlation coefficient to measure the strength and direction of the relationship between tenure and salary.

Perform a regression analysis to find a mathematical model that predicts salary based on tenure. This analysis will help the firm understand the relationship between tenure and salary which could inform compensation strategies and policies. However, this is a simplified analysis and does not account for other variables that may affect salaries, such as job performance, education, and market conditions.