LIR832 Spring 2005 midterm examination answer key

LIR832 Spring 2005 midterm examination answer key - LIR...

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Page 1 of 11 LIR 832: Mid-term Examination: Fall, 2003 Each Problem is worth 20 points. Answer five of the six problems. Problems should be answered as thoroughly as you are able. Partial credit on problems is only possible if I can locate errors in your calculations; neatness and organization of your answers is essential Remember, answer only five of the six problems, if you chose to answer all, I will select the five with the lowest scores. 1. We have two very similar plants. They produce similar products with similar technologies. Plant level policies including compensation are also similar as these are standardized throughout the corporation. The two plants have the same number of non-exempt employees. What differs between the two plants in their labor market. Plant A is in a very slack labor market, unemployment in the area is high and wage levels are not even keeping up with inflation. Plant B is in a region in which labor markets are tight, unemployment is low and wages are rising rapidly. We suspect that differences in labor market conditions affect human resource outcomes at these plants. For example, we know that job satisfaction is lower in plant B than in plant A. We are also interested in differences in attendance between the two plants. We believe that absenteeism will be higher in plant B than in plant A as employees at plant B will be less interested in pleasing their superiors than in plant A, since they know that there are other good jobs available. A. State our beliefs about the number of employees who will be absent in plant B compared to plant A. Is this statement about population characteristics or a sample characteristic? Explain your answer. We expect that the number of employees absent will be lower in plant A than in plant B. This is a statement about an unobserved population. B. Now formalize this into a hypothesis test. Write out the null and alternative hypothesis about the difference in mean absenteeism in plant A and plant B. H 0 : Absenteeism will be no lower at plant A than plant B or
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Page 2 of 11 μ A $ μ B or μ B – μ A # 0 H A : Absenteeism lower at plant A than plant B or μ A < μ B or μ B - μ A > 0 C. Should this be a one or two tailed test? Why? One tailed as we believe absenteeism is higher in Plant B than in Plant A. We are interested in direction, not just difference. D. We take two month (60 day) samples of daily absenteeism from plant A and plant B. Our data is provided in Table C. mean absenteeism standard deviation Plant A 5 employees 6 employees Plant B 7 employees 6 employees Set up the hypothesis test to determine if the absenteeism at the two plants are different and calculate the z or t statistic. Can you reject the null hypothesis in a 10% test, a 5% test, a 1% test?
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This note was uploaded on 07/25/2008 for the course LIR 832 taught by Professor Belman during the Spring '07 term at Michigan State University.

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LIR832 Spring 2005 midterm examination answer key - LIR...

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