Salary Comparison and Education Level

Salary Comparison and Education Level It has been stated over the years the higher one goes in education the greater the salary one can achieve. Is that just what some people have said over the years or is there some truth to this statement? Over the past few weeks Learning Team C has used the data sets of wages and wage earners to compare salary levels in men versus women and to compare years in education versus salary level. Through data research Learning Team C stood on the findings that men to indeed make more than women, and that the higher the degree one obtains, the higher the salary received and it would be financially beneficial to the individual. This week the learning team will again look at salary and education via regression to compare the significance years in education has on salary level.
Research Question Is there a relationship between a person’s education level and their respective annual salary? This study will evaluate years in education versus salary level to predict if higher education coincides with higher pay. First a scatterplot analysis will be preformed which will show if there is a positive or negative correlation between years in education versus salary level. Next, a regression analysis will be performed to make a prediction for the expected salary level of (x) number of years in education.
Data Tables: Annual Wage versus Years in Education
Wage
Ed
19388
6
49898
12
28219
12
83601
17
29736
8
50235
16
45976
12
33411
12
21716
12
37664
18
26820
18
29977
16
33959
17
11780
11
10997
14
17626
12
22133
16
21994
12
29390
13
32138
14
30006
16
68573
16
17694
8
26795
7
19981
4
14476
12
19452
13
28168
13
19306
9
13318
11
25166
12
18121
12
13162
12
32094
12
16667
12
50171
12
31691
12
36178
12
15234
12
16817
12
22485
12
30308
12
11702
14
11186
12
12285
12
19284
16
11451
12
57623
15
25670
13
83443
17
49974
16
46646
5
31702
12

References: University of Phoenix. (2008). Retrieved October 12, 2008, from University of Phoenix, Week Two, Resource. Wages and Wage Earners Data Set. RES342-Research and Evaluation II course web site. Doane, D.P., Seward, L.E. (2007). Applied Statistics in Business and Economics. New York, NY. McGraw-Hill Sokal & Rohlf (n.d.). Critical values for correlation coefficient r. Retrieved October 12, 2008 from http://www.ecowin.org/aulas/resources/stats/correlation.htm