Predict hourly pay for a worker in Job Class 48 with 18 years of experience at the company and 14 years with the union.

An automotive workers union, in conjunction with top management, is negotiating a new hourly pay policy for union workers based on three variables: (1) job class, (2) years with the company, and (3) years as a union member at any company. The goal is to develop an equitable model that can objectively specify hourly pay, thereby reducing pay disparity grievances. Fifty union workers have been sampled and will be used as the basis for the pay model. A portion of the data is shown in the accompanying table.

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a. Report the sample regression equation of the appropriate model.

b. At the 5% significance level, are the predictor variables jointly significant? Are they individually significant?

c. Predict hourly pay for a worker in Job Class 48 with 18 years of experience at the company and 14 years with the union.

 

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