LIR 832 Spring 2005 Midterm-Examination

LIR 832 Spring 2005 Midterm-Examination - LIR 832: Mid-term...

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Page 1 of 13 LIR 832: Mid-term Examination: Spring 2005 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 is 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.
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Page 2 of 13 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. C. Should this be a one or two tailed test? Why?
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Page 3 of 13 D. We take two month (60 day) samples of daily absenteeism from plant A and plant B. Our data is provided in Table C.
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LIR 832 Spring 2005 Midterm-Examination - LIR 832: Mid-term...

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