Question

A human resources manager thinks that employees who work in a more open work environment are more satisfied with their jobs than those who work in a less open work environment. She selects a random sample of 400 employees and measures their work environment (high-more open, low-less open) and job satisfaction (high, low). He learns that 140 of the 200 employees who work in a more open work environment report high job satisfaction and that 100 of the 200 employees who work in a less open work environment report low job satisfaction. He wants to know whether he should make the work environment more open or less open. Note 1: X = Independent variable. Y = Dependent variable. Note 2: H = High, L = Low.

It's important to look at what's stated in the question.

X = work environment and Y = satisfaction

In both cases, H = high and L = low. There's no numerical equivalent at all for any of these scores. We will have the data only in terms of H and L. This basic idea rules out A, C and D, which somehow have numbers in the data points.

Question:

Analyze (or interpret) the data that you chose in Question 28. Which of the following is the appropriate analysis outcome?

A. Those who work in a more open work environment are 20% more likely to be satisfied with their jobs than those who work in a less open work environment.

B. We conclude that the average job satisfaction score of those who work in a less open work environment is significantly higher than those who work in a more open work environment. When we claim this, we would be wrong less than 5% of the time.

C. When the work environment score goes up by 10, the job satisfaction score goes up by 20.

D. Those who work in a more open work environment are 90% more likely to be satisfied with their jobs than those who work in a less open work environment.

Answer 1

Probability of high job satisfaction when working in more open work environment = 140/200 = 0.7

Thus, P(low job satisfaction when working in more open work environment) = 0.3

Probability of low job satisfaction when working in less open work environment = 100/200 = 0.5

Probability of high job satisfaction when working in less open environment = 0.5

Thus, it can be concluded that he should keep the work environment more open.

The appropriate analysis outcome among the given 4 options is

Option (A) Those who work in a more open work environment are 20% more likely to be satisfied with their jobs than those who work in a less open work environment.