The file P02_07.xlsx includes data on 204 employees at the (fictional) company Beta Technologies.
a. Create a recoded version of Education, where 0 or 2 is recoded as 1, 4 is recoded as 2, and 6 or 8 is recoded as 3. Then create dummy variables for these three categories.
b. Use pivot tables to explore whether average salary depends on gender, and whether it depends on the recoded Education. Then use scatter plots to explore whether salary is related to age, prior experience, and Beta experience. Briefly state your results.
c. Run a regression of salary versus gender, prior experience, Beta experience, and any two of the education dummies, and interpret the results.
d. If any of the potential explanatory variables seems to be unrelated to salary, based on the results from part b, run one or more regressions without such a variable. Comment on whether it makes much of a difference in the regression outputs.