Question: An HR department is interested in developing a model to explain mid-level manager compensation. They have a data set with the salary level (Comp) for
An HR department is interested in developing a model to explain mid-level manager compensation. They have a data set with the salary level (Comp) for 36 managers. Included is a measure of business unit profit (Profit), years of service (tears) , and an indicator that identifies managers with a graduate degree (Grad).
Build a regression model that predicts Comp from the 3 variables along with the interaction between Profit and Grad, and the interaction between Years and Grad.
Based on the results of this model, what is the average salary for a manager with 10 years of service, no graduate degree, and a business unity that earns 5,000 profit. (Enter your answer rounded to the nearest dollar)
| Comp | Profit | Years | Grad |
| 118100 | 4500 | 37 | 1 |
| 90800 | 5400 | 5 | 1 |
| 79000 | 3600 | 28 | 0 |
| 115700 | 5800 | 3 | 1 |
| 97100 | 4200 | 11 | 1 |
| 51600 | 3500 | 10 | 0 |
| 88400 | 2200 | 27 | 1 |
| 107600 | 3500 | 22 | 1 |
| 75100 | 4500 | 23 | 0 |
| 60500 | 2500 | 4 | 1 |
| 69800 | 2200 | 5 | 1 |
| 69300 | 3000 | 8 | 1 |
| 127400 | 5200 | 33 | 1 |
| 82200 | 5600 | 14 | 0 |
| 123300 | 4700 | 19 | 1 |
| 50800 | 4100 | 7 | 0 |
| 60500 | 2200 | 33 | 0 |
| 71100 | 4500 | 23 | 0 |
| 50100 | 2300 | 20 | 0 |
| 87600 | 4400 | 20 | 1 |
| 68300 | 2600 | 9 | 1 |
| 90700 | 5700 | 18 | 0 |
| 81600 | 5600 | 26 | 0 |
| 68200 | 3800 | 22 | 0 |
| 80600 | 4900 | 24 | 0 |
| 69500 | 2600 | 3 | 1 |
| 97200 | 5800 | 30 | 0 |
| 93600 | 5200 | 32 | 0 |
| 75900 | 2400 | 11 | 1 |
| 78500 | 3100 | 28 | 0 |
| 88100 | 2100 | 17 | 1 |
| 99500 | 4900 | 31 | 0 |
| 87700 | 5000 | 12 | 1 |
| 63000 | 3400 | 23 | 0 |
| 93200 | 4600 | 20 | 1 |
| 85000 | 4200 | 29 | 0 |
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