Compensation for Sales Professionals Managerial report

Assignment

BUEC 2330 S1

Compensation for Sales Professionals.

Managerial Report

The local chapter of sales professionals in the greater San Francisco area wanted to assess relationships, if any, between differences in salary for inside and outside sales representatives, and years of experience. For the experiment 1-10 years was considered low, 11-20 medium, and 21+ high. 60 inside salesman and 60 outside salesman were interviewed, for a total of 120 observations.

The hypothesis is that there is no difference in salary between inside and outside sales and amongst the different experience levels and that there is interaction.

H₀: µ_inside = µ_outside       H_a: µ_inside ≠ µ_outside

H₀: µ_low = µ_med = µ_high  H_a: µ_low ≠ µ_med ≠ µ_high

 95% confidence interval estimate of the mean salary for all sales will be : L_L = 62966 U_L = 66885

95% confidence interval estimate of the mean salary for inside : L_L = 57057 U_L= 61521

            95% confidence interval estimate of the mean salary for outside: L_L = 68009 U_L = 73115

ANOVA

The 95% interval for overall sales doesn’t even overlap with the 95% confidence interval of inside sales; it does however, overlap with the 95% confidence interval of outside sales.

Despite this observation we go to the ANOVA results to confirm our suspicion that inside sales salaries differ from that of outside sales salaries. With a P-value lower than the .05 α, and the F-critical lower than the F-ratio we can reject the null hypothesis that there is no difference. Similar results between salaries of different experience levels also give us evidence to reject the null hypothesis that there are no differences between the experience levels. When it comes to interaction the P-value is also lower than the .05 α, and F-critical is lower than the F-ratio, making us reject the null hypothesis and conclude that there is a difference between salaries among the different positions and experience levels.