REPORT OF SALES

SALARY
Group 6
COMPENSATION FOR SALES
PROFESSIONALS
• Suppose that a local chapter of sales professionals in the greater San Francisco area conducted a
survey of its membership to study the relationship, if any, between the years of experience and
salary for individuals employed in inside and outside sales positions. On the survey, respondents
were asked to specify one of three levels of years of experience: low (1–10 years), medium (11–
20 years), and high (21 or more years). A portion of the data obtained follow. The complete data
set, consisting of 120 observations, is contained in the file named Sales Salary.
• Managerial Report
1. Use descriptive statistics to summarize the data.
2. Develop a 95% confidence interval estimate of the mean annual salary for all sales persons, regardless of years of
experience and type of position.
3. Develop a 95% confidence interval estimate of the mean salary for inside sales persons.
4. Develop a 95% confidence interval estimate of the mean salary for outside sales persons.
5. Use analysis of variance to test for any significant differences due to position. Use a .05 level of significance, and for now,
ignore the effect of years of experience.
6. Use analysis of variance to test for any significant differences due to years of experience. Use a .05 level of significance,
and for now, ignore the effect of position.
7 .At the .05 level of significance test for any significant differences due to position, years of experience, and interaction.
1. Use descriptive statistics to   Salary  
summarize the data Count 120
Mean 64925
Sample variance 117476832
Salary $ is a variable that constantly Sample standard deviation 10839
changes based on experience and Minimum 48621
work position, so the frequency Maximum 88730
distribution is built up for this Range 40109
variable. Mean value, standard Sum 7791057
deviation, and variance were
1st quartile 56145
calculated using the Minitab
statistical software as shown in Median 61490
Table 1. The descriptive statistics 3rd quartile 76539
and summary graph are presented Mode 2
as below. Kurtosis -1.11
Skewness 0.49
Table 2. Frequency distribution - Position
Table 3. Frequency Distribution -
Experience
2. Develop a 95% confidence
interval estimate of the mean   Salary  
annual salary for all salespersons, Count 120
regardless of years of experience Mean 64925
and type of position. 11747683
Sample variance 2
Sample standard deviation 10839
Minimum 48621
Maximum 88730
Range 40109
Sum 7790157
1st quartile 56145
Median 61490
3rd quartile 76539
Mode 2
Kurtosis -1.11
Skewness   0.49
   Salary  
3. Develop a 95% confidence Count 60
interval estimate of the mean
Mean 56021
salary for inside salespersons.
Sample variance 12886852
Sample standard deviation 3590
Minimum 48621
Maximum 64562
Range 15941
Sum 3361231
1st quartile 53110
Median 56210
3rd quartile 58446
Mode 2
Kurtosis -0.28
Skewness   0.31
   Salary  
4. Develop a 95% confidence Count 60
interval estimate of the mean Mean 73830
salary for outside salespersons.
Sample variance 62773302
Sample standard deviation 7923
Minimum 60259
Maximum 88730
Range 28471
Sum 4429826
1st quartile 66549
Median 76316
3rd quartile 79045
Mode 0
Kurtosis -0.09
Skewness   -0.24
5. Use analysis of variance to test
for any significant differences due One-way ANOVA: Salary $ versus
to position. Use a .05 level of Position Inside Outside
significance, and for now, ignore
the effect of years of experience. Sample size 60 60
Mean 26021 73830
Two hypotheses are proposed: StDev 3590 7923
- H0: Have any significant Lower Critical Value 54448 57593
differences due to position Upper Critical Value 72258 75403
- H1: Haven’t any significant Significance level 0.5
differences due to position S 6150.62
R-sq 68.07%
R-sq(adj) 67.80%
R-sq(pred) 66.98%
Pooled StDev 6150.62
F-Value 251.54
P-Value 0.00
6. Use analysis of variance to test
for any significant differences due One-way ANOVA: Salary $ versus
to years of experience. Use a .05 Experience Inside Outside
level of significance, and for now,
ignore the effect of position. Sample size 40 40
Two hypotheses are proposed: Mean 59820 66339
- H0: Have any significant StDev 6005 9700
differences due to years of Lower Critical Value 56607 63127
experience Upper Critical Value 63032 69551
- H1: Haven’t any significant Significance level 0.5
differences due to years of S 10258.1
experience R-sq 11.93%
R-sq(adj) 10.43%
R-sq(pred) 7.36%
Pooled StDev 10258.1
F-Value 7.93
P-Value 0.001
7 .At the .05 level of significance Term Coefficients SE Coef T-Value P-Value VIF
test for any significant differences Constant 64925 325 199.85 0.004
due to position, years of Position
experience, and interaction. Inside -8905 325 -27.41 0.000 1.05
Outside -8905 325 -27.41 0.000 1.05
Two hypotheses are proposed:
- H0: Have any significant Experience
differences due to position, High 1413 459 3.08 0.003 1.38
years of experience and Low -5106 459 -11.11 0.000 1.38
interraction Position*Experience

- H1: Haven’t any significant Inside High -11 459 -0.02 0.98 1.38
Inside Low 4117 459 8.96 0.000 1.38
differences due to position,
S 3558.76
years of experience and
interraction R-sq 89.67% Position Experience Position*Experience

R-sq(ad) 89.22% F-Value 751.86 65.86

R-sq(pred) 88.56% P-Value 0.000 0.000 0.000