Questions . What are the effects of date of hire on salary? What is the cause of
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Questions. What are the effects of date of hire on salary?
What is the cause of this effect and why or why not is this normal?
name gender age date hired salary average employee contribution to 401(k) average employer contribution to 401(k) Toni Hartmann f 25 3/4/2009 35,000 0.03 0.05 Emily Patterson f 28 10/4/2012 38,000 0.03 0.04 Sunny Jones f 40 1/1/2010 38,000 0.05 0.04 Tammy Peters f 38 4/20/2011 41,000 0.03 0.04 Karen Phillips f 55 9/2/2006 43,000 0.01 0.06 Samantha Ram f 33 8/30/2012 45,000 0.05 0.04 Tanya Rendon f 60 11/23/2007 65,000 0.02 0.06 Susan Turner f 45 4/20/2012 65,000 0.03 0.04 Barbara Jones f 35 11/4/2010 70,000 0.02 0.04 Mary Ortiz f 48 8/10/2010 85,000 0.04 0.04 Larry Overland m 33 9/3/2013 27,000 0.01 0.02 Peter Sun m 28 4/25/2014 28,000 0.04 0.02 Jim Ho m 27 1/3/2015 31,000 0.03 0.02 Hank Timber m 31 3/12/2014 35,000 0.01 0.02 Harley Finson m 44 4/8/2005 36,000 0.00 0.06 Henry Wright m 38 7/22/2010 45,000 0.04 0.04 Hank Evans m 55 2/10/2009 48,000 0.03 0.05 Barry Fine m 58 3/5/2004 50,000 0.04 0.06 John Garza m 45 4/7/2006 60,000 0.04 0.06 Eric Abboud m 51 1/2/2011 165,000 0.02 0.04Explanation / Answer
What are the effects of date of hire on salary?
What is the cause of this effect and why or why not is this normal?
Answer:
Here, we have to check whether the there is any effect of the date of hire on the salary of the employee or not. For checking whether the effect is statistically significant or not, we have to find the correlation coefficient between the year of hire and salary of the employees. For finding the correlation we need to introduce the new variable such as year and in this variable we will ignore the date and month details for computation purpose. The correlation coefficient between the year and salary is given as -0.09955, which means there is a very low negative correlation exists between the two variables year and salary. This means we conclude that there is no any statistically significant effect of the date of hire on the salary of the employees. This is normal and it is due to the different qualifications and skill sets of the employees and the salary do not only depends the date of joining or years of experience but also it counts the qualification and skill sets of the employees.
The correlation coefficient output:
Date
salary
Date
1
salary
-0.09955
1
Date
salary
Date
1
salary
-0.09955
1
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