Question

You ran a study at your business examining how many new versus established employees joined your company's retirement program based on 2 incentive plans.

Your data look like this:

Incentive 1 Incentive 2

New 40   70

Established   160 100

You want to know if the incentives were more/less effective for the groups of employees. Which group differed most from what was expected?

A. Established/Incentive 2

B. New/Incentive 1

C. New/Incentive 2

D. Established/Incentive 1

Answer 1

There are total 4 groups :

Established/Incentive 2

New/Incentive 1

New/Incentive 2

Established/Incentive 1

Total number of employees = 40+70+160+100 = 370

Expected number of employees in each group = 370/4 = 92.5

Deviation from expected of the group  New/Incentive 1 = |40-92.5|=52.5

Deviation from expected of the group  New/Incentive 2 = |70-92.5|=22.5

Deviation from expected of the group  Established/Incentive 1 = |160-92.5|=67.5

Deviation from expected of the group  Established/Incentive 2 = |100-92.5|=7.5

Thus, the group differed most from what was expected is Established/Incentive 1

So, Answer is D