Question: Hypothesis Testing

Click the 'scenario' button below to review the topic and then answer the following question:

The leadership wants to ensure that the employee pay is on par with industry standards. For an engineering manager, the industry average is $170,000.

Using a 0.05 significance level, construct a confidence interval (round to dollar) to test the claim that for the engineering managers in the company, the mean salary is at least $170,000. State the null hypothesis and alternative hypothesis in symbolic form (use transliteration 'mu' in place of ), and find the sample mean salary. Explain whether you reject or fail to reject the null hypothesis, and state a final conclusion that addresses the original claim.

Scenario : Inferential Stats

The recent pandemic greatly affected the working environment. According to a survey, post-pandemic employees are more than ever demanding changes to policies and benefits in the workplace.

Your organization, XYZ Company, notes several hurdles to attracting and retaining staff in the post-pandemic climate. One example is the employer's inability to adjust to the remote work arrangement, and another is a lack of pay equity commitment.

In keeping with XYZ Company's goal to treat employees well, management is looking for feedback to measure the company's performance as the employer of choice.

You work as the Manager of Workforce Analytics within the Human Resources department. The company is growing rapidly, and your boss, Jane, who is the Chief People Officer (CPO), wants to make sure that the company is treating its employees equitably. She is analysis-driven, so she taps you to work on several projects to uncover any potential issues. Her objectives are to:

1. Describe the current state of salary data using the measures of central tendency and variability.
2. Give a point estimate and construct a confidence interval of the number of employees who want to work remotely.
3. Conduct a hypothesis test from two populations, male employees and female employees, of a claim that they have the same mean salary.
4. Test a claim that employee pay is on par with industry standards with a hypothesis test from one population.
5. Apply a normal distribution to review the current dental insurance plan expenses
6. Identify any correlation between seniority and pay
7. Conduct a regression analysis between employee age and salary