B01BITA308: Salary Increase Analysis in Business Information

This assignment presents a comprehensive analysis of salary increases, focusing on potential gender disparities within a company. It involves creating new columns in a dataset to calculate salary increases and average increases over the employment period. Histograms are used to visualize the distribution of average salary increases, revealing asymmetry and skewness. Side-by-side boxplots compare average salary increases for males and females, highlighting differences in key statistical parameters. Regression analysis is performed to model the relationship between starting and current salaries for both genders, revealing insights into how initial salaries impact subsequent raises. The analysis concludes that while the rate of salary increase might be higher for females, the overall increase for males tends to be larger due to historically higher starting salaries. The report emphasizes the importance of addressing historical pay differences to ensure gender equality in compensation. Desklib provides access to similar solved assignments and study tools for students.

BUSINESS INFORMATION ANALYSIS
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PART 3
Question 9
The objective is to compare the increase in salary of males and females based on the given
sample data and to examine the issue as to whether the increase in salary of females has been
lesser in comparison to salaries of males.
a) The requisite new columns have been created. The requisite formulas that have been used
are highlighted as shown below.
Length Empl = 2014 – Start Yr
Increase in Salary = Current Salary – Start Salary
Avg Incr = (Increase in Salary/Length Empl)
b) The relevant histogram of the requisite variable is shown below.
From the above histogram, it is apparent that the shape is asymmetric since there is a long tail
on the right side. In case of the histogram being symmetric, the tail on both sides is almost
equal in size. Further, there is presence of right skew or positive skew since there are a
number of values present which seem to be outliers on the higher side. Thus, this clearly

highlights that there are certain employees which tend to have a very high average increase in
salary on an annual basis resulting in asymmetry of distribution (Hillier, 2016).
c) The requisite side by side boxplot summarises the relevant data for average increase in
salaries of males and females indicated below.
The requisite boxplot is shown below.
From the boxplot highlighted above, it is apparent that average salary increase for females is
clearly lesser than the male counterparts. This is apparent in each of the give parameters used
to construct the box plot. For instance, 50% of the female employees have had an average
annual salary increase of $ 1,393 or less in comparison to the corresponding figure for $
1,474 in case of males. This trend is visible for other aspects such as 75th percentile along
with the maximum value which are both lesser for female employees as compared to the
males (Eriksson and Kovalainen, 2015).

d) The regression analysis between start salary and current salary for males is indicated
below.
In the given case, the starting salary is the independent salary whereas the current salary is
the dependent salary. This is because the current salary is derived by provided incremental
raises on the starting salary. From the above regression analysis, it is apparent that the slope
is 0.93 which implies that a $ 1 increase in the starting salary would lead to a raise in the
current salary by $ 0.93. Also, the given slope is significant as seen from the p value of 0 for
the given model (Hair et. al., 2015).
The regression analysis between start salary and current salary for females is indicated below.

In the given case, the starting salary is the independent salary whereas the current salary is
the dependent salary. This is because the current salary is derived by provided incremental
raises on the starting salary. From the above regression analysis, it is apparent that the slope
is 0.98 which implies that a $ 1 increase in the starting salary would lead to a raise in the
current salary by $ 0.98. Also, the given slope is significant as seen from the p value of 0 for
the given model (Flick, 2015).
Conclusion
Based on the above discussion, it is apparent that the increase in salaries is higher for the
females as compared to the males assuming that the starting salary remains the same.
However, since the starting salary of males is higher than females, hence the increase of
males tends to be higher than corresponding value for females. In this regards, the conclusion
does match with that derived for part c as shown above.
Question 10
The given data analysis of the sample data clearly highlights that the increase in salary for the
males is higher in comparison to that of females. However, further analysis highlights that
this is linked to the starting salary as is apparent from the regression model. The regression
model for both the genders clearly highlights that for each of the two genders, starting salary
is a crucial aspect in relation to the current salary. Thus, even though the increases is more for
females in comparison to males assuming equal levels of starting salary but the males tend to
have a higher increase since there was differential built in the starting salaries which has been
carried out ever since and is reflected in the salary increases as well. It may be possible that
under the current state in the organisation, the gender gap may have reduced but owing to
historical legacy of pay difference between the two genders, the increase also seems to reflect
the same trend.
It is imperative that corrective action needs to be taken in order to ensure equality in the pay
levels for the two genders. This would ensure that in the long run, no labour shortage is
observed and also female participation levels are not adversely impacted.

References
Eriksson, P. and Kovalainen, A. (2015) Quantitative methods in business research 3rd ed.
London: Sage Publications.
Flick, U. (2015) Introducing research methodology: A beginner's guide to doing a research
project. 4th ed. New York: Sage Publications.
Hair, J. F., Wolfinbarger, M., Money, A. H., Samouel, P., and Page, M. J. (2015) Essentials
of business research methods. 2nd ed. New York: Routledge.
Hillier, F. (2016) Introduction to Operations Research 6th ed. New York: McGraw Hill
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