Question: The VP of HR at the large software company in your region is concerned that the company is not doing enough to recognize generational differences with their employees. She is concerned that younger generations of employees are less satisfied than older generations and, what’s more, that the age-old strategy of paying employees more to increase their satisfaction isn’t working as well with the younger group.

You have been hired by the VP to dig deeper into these issues of generational differences, job satisfaction, and the satisfaction involved with higher income. Working with the dataset labeled “P 6_generational-job-sat”, analyze and interpret the main effects and interaction effects of generation (age category or ‘age_bin’, indicating this is a binary variable) and income (income category or ‘inccat’) on job satisfaction (‘jobsat’). (*Note: both independent variables are measured as categorical variables for all analysis purposes).

For full credit, your answer should include the following parts:

? Statement of what analysis you will use to analyze these data

? Acknowledgement of key assumptions of the analysis you use

? Statement of null and alternative hypotheses

? All test statistics and p-values relevant to hypotheses

? Conclusion in terms of hypotheses

? Graphical illustration of the interaction effect (whether or not it is significant)

? Complete interpretation of results (referring to all effects tested), put into the original context of the VP’s concern