Page 304 - Applied Statistics with R

304 CHAPTER 14. TRANSFORMATIONS

initech = read.csv("data/initech.csv")

plot(salary ~ years, data = initech, col = "grey", pch = 20, cex = 1.5,
main = "Salaries at Initech, By Seniority")

Salaries at Initech, By Seniority

250000

salary 150000

50000

5 10 15 20 25

years

We first fit a simple linear model.

initech_fit = lm(salary ~ years, data = initech)
summary(initech_fit)

##
## Call:
## lm(formula = salary ~ years, data = initech)
##
## Residuals:
## Min 1Q Median 3Q Max
## -57225 -18104 241 15589 91332
##
## Coefficients:
## Estimate Std. Error t value Pr(>|t|)
## (Intercept) 5302 5750 0.922 0.359
## years 8637 389 22.200 <2e-16 ***
## ---