Question
A large firm has established what it hopes is an objective system of deciding on annual pay increases for its employees. The system is based
A large firm has established what it hopes is an objective system of deciding on annual pay increases for its employees. The system is based on a series of evaluation scores determined by the supervisors of each employee. Employees with scores above 80 receive a merit pay increase, those with scores between 50 and 80 receive the standard increase, and those below 50 receive no increase. The firm designed the plan with the objective that, on average, 25% of its employees would receive merit increases, 65% would receive standard increases, and 10% would receive no increase. After 1 year of operation using the new plan, the distribution of pay increases for a random sample of 600 company employees is as shown below. Use this information to answer the next 4 questions.
Distribution of Pay Increases | ||
None | Standard | Merit |
42 | 365 | 193 |
Using the information in question 1, state the hypothesis for testing if the distribution of pay increases differs significantly from the percentage distribution established by the firm
| A. | Ho: Pnone = 0.10 Pstandard = 0.65 Pmerit = 0.25 Ha: Distribution is different than that stated in Ho | |
| B. | Ho: Pnone = 0.25 Pstandard = 0.65 Pmerit = 0.10 Ha: Distribution is different than that stated in Ho | |
| C. | Ho: Pnone = Pstandard = Pmerit Ha: Distribution is different than that stated in Ho | |
| D. | Ho: Pnone = 0.33 Pstandard = 0.33 Pmerit = 0.33 Ha: Distribution is different than that stated in Ho |
Using the information from questions 1, what is the test statistic for the test if the distribution of pay increases differs significantly from the percentage distribution established by the firm
| A. | 5.75 df = 4 | |
| B. | 19.329 df = 3 | |
| C. | 19.329 df = 2 | |
| D. | 0.06 |
Using the information from question 1, state the p value for a test if the distribution of pay increases differs significantly from the percentage distribution established by the firm
| A. | 0.78 | |
| B. | 0.05 | |
| C. | 0.000063 | |
| D. | 0.63 |
Using the information from question 1, what is your conclusion for a test using an = 0.01 if the distribution of pay increases differs significantly from the percentage distribution established by the firm
| A. | The percent of employees in each category is the same | |
| B. | The distribution does not differ from the distribution preferred by the firm | |
| C. | Test is inconclusive | |
| D. | The distribution differs from the distribution preferred by the firm |
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Introduction To Health Care Management
Authors: Sharon B. Buchbinder, Nancy H. Shanks
3rd Edition
128408101X, 9781284081015
