Question

Lester Hollar is vice president for human resources for a large manufacturing company. In recent years, he has noticed an increase in absenteeism that he thinks is related to the general health of the employees. Four years ago, in an attempt to improve the situation, he began a fitness program in which employees exercise during their lunch hour. To evaluate the program, he selected a random sample of eight participants and found the number of days each was absent in the six months before the exercise program began and in the six months following the exercise program. Below are the results.

Employee	Before	After
Bauman	6	5
Briggs	6	2
Dottellis	7	1
Lee	7	3
Perralt	4	3
Rielly	3	6
Steinmetz	5	3
Stoltz	6	7

At the 0.05 significance level, can he conclude that the number of absences has declined? Estimate the p-value.

1. State the decision rule for 0.05 significance level. (Round your answer to 3 decimal places.)

2. Compute the test statistic. (Round your answer to 3 decimal places.)

Answer 1

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Answer:

Null hypothesis: ud = 0
Alternative hypothesis: ud > 0
difference between numers is: 1,4,6,4,1,3,2,-1
Mean = 2.5 and standard deviation = 2.2

t(2.5) = (2.5-0)/[2.2/sqrt(8] = 3.2141
p-value = P(t> 3.2141 when df=7) = 0.0074
Reject H0 if t > 1.895
Since the p-value is less than 5%, reject Ho.
Test supports conclusion that abcences have
declines.