Suppose that the Laurier Company recently bought the Western Company and subsequently terminated 20 of Western's employees.As part of the buyout agreement, it was promised that the severance packages offered to the former Western employees would be equivalent to those offered to Laurier employees who had been terminated in the past year.Thirty-six year old Bill Smith, a Western employee for the past 10 years, earning $32,000 per year, was one of those let go.His severance package included an offer of 5-weeks' severance pay.Bill complained that this offer was less than that offered to Laurier's employees when they were laid off, in contravention of the buyout agreement.

A statistician was called in to settle the dispute.The statistician was told that severance is determined by three factors: age, length of service with the company (years), and pay ($10K).A random sample of 50 Laurier ex-employees was taken and the statistician wrote the attached report and data analysis.

The company wants you to review the statisticians report and verify it before you respond back to Mr. Smith.

Analyze the statisticians report and explain what was done correctly and identify areas and explanations about what is not correct and needs either improvement or recalculation.Write up a short report back to your company with your findings.Include, if appropriate, an updated severance package recommendation; include supporting documentation/calculations.

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