The file P02_07.xlsx includes data on 204 employees at the (fictional) company Beta Technologies.
a. Run a forward stepwise regression of Annual Salary versus Gender, Age, Prior Experience, Beta Experience, and Education. Would you say this equation does a good job of explaining the variation in salaries?
b. Add a new employee to the end of the data set, a top-level executive. The values of Gender through Annual Salary for this person are, respectively, 0, 56, 10, 15, 6, and $500,000. Run the regression in part a again, including this executive. Are the results much different? Is it “fair” to exclude this executive when analyzing the salary structure at this company?