An automotive workers union, in conjunction with top management, is negotiating a new hourly pay policy for union workers based on three variables: (1) job class, (2) years with the company, and (3) years as a union member at any company. The goal is to develop an equitable model that can objectively specify hourly pay, thereby reducing pay disparity grievances. Fifty union workers have been sampled and will be used as the basis for the pay model. A portion of the data is shown in the accompanying table.
Hourly Pay ($) Job Class Years with Company Years in Union
15.90.......................24.......................12..............................7
23.70.......................52.......................17.............................14
⋮...............................⋮........................⋮...............................⋮
26.70........................43........................2..............................2
a. Report the sample regression equation of the appropriate model.
b. At the 5% significance level, are the explanatory variables jointly significant? Are they individually significant? Use the p-value approach for the tests.
c. Predict hourly pay for a worker in Job Class 48 with 18 years experience at the company and 14 years with the union.
d. A manager wonders if the years with the company and the years as a union member matter in negotiating hourly pay. At the 5% significance level, can you conclude that the influence of these two explanatory variables is jointly significant? Provide the details.