12.72 You have been asked to develop a model to analyze salary in a large business organization.

The data for this model are stored in the file named Salorg; the variable names are self-explanatory.

a. Using the data in the file, develop a regression model that predicts salary as a function of the variables you select. Compute the conditional F and conditional t statistics for the coefficient of each predictor variable included in the model.

Show all work and carefully explain your analysis process.

b. Test the hypothesis that female employees have a lower annual salary conditional on the variables in your model. The variable “Gender_1F”

is coded 1 for female employees and 0 for male employees.

c. Test the hypothesis that the female employees have had a lower rate of salary increase conditional on the variables in the model developed for part b.