Calculate a 95% confidence interval for the mean starting salary of all employees who stay (Yes) at least three years with D&Y.

Business by Geoffrey

Business Question

Demand for systems analysts in the consulting industry is greater than ever. Graduates with a combination of business and computer knowledge—some even from liberal arts programs—are getting great offers from consulting companies. Once these people are hired, they frequently switch from one company to another as competing companies lure them away with even better offers. One consulting company, D&Y, has collected data on a sample of systems analysts with undergraduate degrees they hired several years ago. The data are in the file Download C08_02.xlsx

The variables are as follows:

  • Starting Salary: employee’s starting salary at D&Y
  • On Road Pct: percentage of time employee has spent on the road with clients
  • State Univ: whether the employee graduated from State University (D&Y’s principal source of recruits)
  • CIS Degree: whether the employee majored in Computer Information Systems (CIS) or a similar computer-related area
  • Stayed 3 Years: whether the employee stayed at least three years with D&Y
  • Tenure: tenure of employee at D&Y (months) if he or she moved before three years

D&Y is trying to learn everything it can about retention of these valuable employees. You can help by solving the following problems and then, based on your analysis, presenting a report to D&Y.

For this case study, submit only Excel file.

(1) Calculate a 95% confidence interval for the mean starting salary of all employees who stay (Yes) at least three years with D&Y.

(2)Calculate a 95% confidence interval for the mean starting salary of all employees who do not stay (No) at least three years with D&Y.

(3) Based on your findings on Part 1 and 2, does it appear the employees who do not stay at least 3 years are underpaid than the employees who do stay at least 3 years. Explain.