Question

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    5    2

2 1 1

3 7 7

4 7 4

5    3    5

6    1    5

7 3 2

8 4    4

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 0.02 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, H0.

Answer 1

a)

0.02 level with right tail test and n-1= 7 df, critical t=			2.517
Decision rule: reject Ho if test statistic t>2.517

b)

test statistic =0.150

c)

p value

=

0.4425

from excel: tdist(0.15,7,1)

d)

since p value >0.05

we fail to reject Ho