Lester Hollar is vice president for human resources for a large manufacturing company. In recent years, he has noticed an increase in absenteeism, which 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 last six months. Below are the results.
Employee | Before | After |
1 | 2 | 1 |
2 | 5 | 2 |
3 | 4 | 2 |
4 | 7 | 2 |
5 | 7 | 4 |
6 | 2 | 7 |
7 | 3 | 6 |
8 | 4 | 7 |
At the .05 significance level, can he conclude that the number of absences has declined? Estimate the p-value.
a. State the decision rule for 0.05 significance level: H0 : μd≤ 0; H1 : μd > 0. (Round the final answer to 3 decimal places.)
Reject H0 if t > .
b. Compute the value of the test statistic. (Round the final answer to 3 decimal places.)
Value of the test statistic
c. Estimate the p-value? (Round the final answer to 4 decimal places.)
d. What is your decision regarding H0?
At the 0.05 significance level, (Click to select) do not reject reject H0.
Part a)
Reject null hypothesis if t > t(α)
Critical value t(α) = t(0.05) = 1.895
t > 1.895
part b)
Test Statistic :-
S(d) = √(Σ (di - d̅)2 / n-1)
S(d) = √(89.875 / 8-1) = 3.5832
d̅ = Σ di/n = 3 / 8 = 0.375
t = d̅ / ( S(d) / √(n) )
t = 0.375 / ( 3.5832 / √(8) )
t = 0.296
Part c)
P - value = P ( t > 0.296 ) = 0.3879
Part d)
Test Criteria :-
Reject null hypothesis if t > t(α)
Critical value t(α) = t(0.05) = 1.8946
t < t(α) = 0.296 < 1.8946
Result :- Fail to reject null hypothesis
Do not reject H0.
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