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- Distribution of Current Salaries

- Macro & Microeconomics
- Assignment
- Undergraduate
- Pages: 4 (1000 words)
- December 12, 2019

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The paper "Distribution of Current Salaries" is a wonderful example of a Macro and Microeconomics Assignment. Here the bar chart represents the breakdown of respondents by their job category, we find that most of the respondents were at the clerical position, then at the managerial position and there were a few participants who were supervisors from the selected participants. Table 3: Breakdown by gender and Job Category Job Category Clerical Supervisory Managerial Total Male 157 27 74 258 Female 206 0 10 216 Total 363 27 84 474 Plot 3 Table 3 is the cross-tabulation of gender and job categories, it helps us to know that from 474 participants there were 258 male and 216 female participants.

Plot 2 shows that most of the participants have a clerical job, there were no females from the participants who are on the post of supervisor and there were 74 male participants who had managerial positions and only 10 females from the participants were on that position. Table 4: Distribution of Current Salaries Descriptive Statistics Variable N Mean Median StDev SE Mean Min Max Q1 Q3 Current Salaries 474 34420 28875 17076 784 15750 135000 24000 37163 Plot 4 The descriptive statistics show that the minimum current salary of an employee from the selected sample is $15750 and the maximum is $135000 in a year and the average salary of the selected sample is $34420.

Histogram separates the data into intervals on the x-axis and draws a bar for each interval whose height, by default, is the number of observations (or frequency) in the interval. Minitab places observations that fall on interval boundaries into the interval to the right (except those in the interval farthest to the right, which is placed in the left interval). Here the histogram shows that most of the respondents had salaries from $20000 to $40000 in a year. Plot 5: Distribution of Current Salary by Ethnicity Box plot is also called a box-and-whisker plot.

The whiskers are the lines that extend from the top and bottom of the box to the adjacent values, the lowest and highest observations still inside the region defined by the lower limit Q1 - 1.5 (Q3 - Q1) and the upper limit Q3 + 1.5 (Q3 - Q1). Outliers are points outside the lower and upper limits, plotted with asterisks (*). Here is a simple box plot that shows the current salary obtained by the minority and majority groups.

The plot shows that the participants who didn’ t belong to minority groups were getting more as compared to those who were from the minority group. Plot 6: Relationship of Current Salary to Starting Salary Here the box plots use to get the relation among the starting and current salaries of the respondents. The plots show that there is a positive association between the current and the starting salaries of the employee. Regression Analysis Regression investigates the dependence of one variable conventionally called the dependent variable on one or more variables called the independent variable and provides an equation to be used for estimating or predicting the average value of the dependent variable from the known values of the independent variable. The regression procedure fits the model: Y = a + (b x X) + e Where Y is the predictor, X is the predictor, “ a” is the value of Y when X equals zero and is called Y-intercept, and “ b” indicates the changes in Y for a unit change in X and is called the slope of the line and “ e” is an error term having a normal distribution with a mean of zero and standard deviation σ (Fisher, 1922, 560). Here we are obtaining the regression equation by considering starting salary as an independent variable and current salary as a dependent variable. The regression equation is Starting salary ($) = 3053 + 0.406 Current Salary ($) S = 3741 R-Sq = 77.5% R-Sq(adj) = 77.4% Correlation association tells us about the association among the variables.

By applying correlation analysis we find the Pearson correlation between Starting Salary and Current Salary = 0.88 The correlation value shows a strong positive association among the staring and current salaries. R-Square is the statistical measure of how well a regression line approximates real data points; R-square is a descriptive measure between zero and one, indicating how good one term is at predicting another.

An R-squared of 1.0(100%) indicates a perfect fit. Here we have R-square value = 77.5% it shows that the fir is perfect. In order to know the impact of previous experience on the salary of the employee we apply the correlation on the variables, previous experience, and current salaries and we get the Pearson correlation = -0.097, that approximately equals to zero; it shows that there is no association among the previous experience and the current salary getting by the employee. Plot 7: Relationship of Current Salary and Starting Salary Here the regression plot shows that the current salaries and the starting salaries have a positive relationship.

In the graph, we can see that most of the participants had salaries from $10,000 to $40,000. Task 2 In this paper, our second task is to compare the salaries in U. K and U. S., for this purpose we gathered the data from the data source: Tower Perrin. Table Average Annual Salaries in U. K.

and U. S. Job Category Salaries in U. S. (£ ) Salaries in U. K. (£ ) Director of Human Resources 274773 190540 Accountant 42032 72018 Computer Programmer 41154 36439 Manufacturing Workers 28638 26325 Call Centre Workers 15115 15288 Off Shore Workers 35000 27005 Here the line graph shows that in most of the position the salaries in the United States are more as compared to in the United Kingdom, we find that from the job position that we have in the table there was only the position of Accountant who was getting more in the U. K.

as compared to the U. S. Conclusion Task 1 The paper helps to know the salary difference among the minority and majority groups in the U. S., we also analyzed the association among the starting and current salaries of the employee, effect of gender, it was noticed that from the participants there were a few respondents who were at the post of Manager from a minority group and the current salaries of them were less than the majority group. Correlation analysis shows that starting salaries and current salaries are highly positive associated with each other but it was found that there is no association between the previous experience of the respondents and their current salaries. Task 2 In task 2 we analyze the difference among the salaries in U. K.

and U. S. at the same positions. We find that most of the position's salaries in the U. S. are more than salaries in the United Kingdom.

References

R.A. Fisher. (1922). The goodness of fit regression formulae, and the distribution of regression coefficients, Journal Royal Statistics, 597-612.Download free paperFile format: **.doc,** available for editing