Table 6-15 on the textbook's Web site contains data on 46 mid-level employees and their salaries. The available independent variables are:
Experience= years of experience at the current job
Management= 0 for non managers and 1 for managers
Education= 1 for those whose highest education level is high school
2 for those whose highest education level is college
3 for those whose highest education level is graduate school
a. Does it make sense to utilize Education as it is listed in the data? What are the issues with leaving it this way?
b. After addressing the issues in part (a), run a linear regression using Experience, Management, and the changed Education variables. What is the new model? Are all the variables significant?
c. Now create a model to allow for the possibility that the increase in Salary may be different between managers and non managers, with respect to their years of experience. What are the results?
*d. Finally, create a model that incorporates the idea that Salary might increase, with respect to years of experience, at a different rate between employees with different education levels.