There is a lot of concern about “salary compression” in universities. This is the effect of paying huge salaries to attract newly-minted Ph.D. graduates to university tenure-track positions and not having enough left in the budget to compensate tenured faculty as fully as they might deserve. In short, it is very possible for a new hire to make a larger salary than a person with many years of valuable experience.
The file P09_77.xlsx contains (fictional but realistic) salaries for a sample of business school professors, some already tenured and some not yet through the tenure process. Formulate reasonable null and alternative hypotheses and then test them with this data set. Write a short report of your findings.