Preparing the data for analysis

Because the small business owner has observed the current and beginning salaries, a log transformation is applied and it is assumed that the logarithm of current and beginning salaries are normally distributed.

1. To create a log transformation, from the menus choose:

   Transform > Compute Variable...

   

2. Type logSalary in the Name field.
3. Type LN(salary) in the Value Definition field.
4. Click Apply.
5. Repeat steps 1 - 4 but this time type logSalbegin in the Name field and LN(salbegin) in the Value Definition field.

   This applies the log transformations to the salary and salbegin variables. It is assumed that the logarithm of current and beginning salaries are normally distributed.

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