Exercise

New hire pay: a simple regression

Linear regression is another tool that can be used to test differences between groups. Start by using a simple linear regression to test the original idea that that new hires earn more than current employees, without taking any other factors into account. Use the pay dataset again for the following exercises.

Instructions 1/4

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  • Use lm() to run a simple linear regression to test whether new hires earn more than current employees. The syntax is very similar to t.test(). Assign the result to model_simple.