PART I: Pay Compression

You just learned how to evaluate pay compression by computing compa$-$ratios and comparing them with employee tenure. Now, it$$s time to apply your new skills to a new data set, which appears in the sheet called $$Practice$$ in the Excel workbook.

Imagine that you$$re working at a different company but are still focusing on the job of a Customer Service Representative. There are $108$ customer service representatives, and the pay range$/$grade midpoint for the job is $$46,500.$

Respond to the following questions:

$1.$ Calculate the compa$-$ratio for each individual customer service representative. What is the highest and lowest compa$-$ratio that you observed?

$2.$ Calculate the overall average compa$-$ratio across all customer service representatives. What is it$?$ Is the company compensating people noticeably below or above the pay range$/$grade midpoint $($on average$)?$

$3.$ Create a scatterplot with the tenure and compa$-$ratio variables. Is there evidence of pay compression or inversion? How do you know? What is the correlation between tenure and compa$-$ratio variable? What does it imply?