Providing an overall summary of the following two variables:
1.1. Percentage increase in salary (PercentSalaryHike)
2. Identify potential variables that may influence PercentSalaryHike:
2.1. Identify a list of possible variables that influence percentage increase in
salary. Which three independent variables have the more impactful linear
relationship with PercentSalaryHike? What form of relationship(s) exist
between the independent variable(s) and PercentSalaryHike? Are there any
potential multi-collinearity problems? If so, which variables are they?
2.2. Build a regression model to estimate percentage increase in salary.
2.3. Perform residual analysis. Based on your residual plots, does there appear to
be any problems with the regression model?
3. Hugo has performed some preliminary analysis and discovered that the
performance rating is a significant predictor of the Percentage increase in salary.
Prior research shows that the strength of the relationship between performance
rating and percentage increase in salary may vary according to satisfaction with
the job. Generally speaking increased job satisfaction creates a more productive
workforce as they are more motivated to improve their job performance.
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