Based on the example below, 1. How would the Boss inform the participants about
ID: 446618 • Letter: B
Question
Based on the example below, 1. How would the Boss inform the participants about the salary increase or not increase?
Suppose a boss wants to find out whether an increase in salary will motivate his staff to work more. He took a random sample 100 employees and assigned into two groups A and B. Group A is given a salary increase and Group B is not. The experimental group is A and the control group is B. The null hypothesis is Ho, the mean production of group A and group B is the same (Against the alternative). H1: the mean production of group A is greater that group B. The alpha is = 0.05. The independent and dependent would be group A and group B.
Explanation / Answer
Hypothesis-
Ho, the mean production of group A and group B is the same ( H0: 1 - 2=0)
H1: the mean production of group A is greater that group B ( Ha: 1 -2>0)
alpha is = 0.05
We have to carry out a right tailed test for testing this hyposthesis.
Use the two-sample t-test to determine whether the difference between means found in the sample is significantly different from the hypothesized difference between means.
Standard error. Compute the standard error (SE) of the sampling distribution.
SE = sqrt[ (s12/n1) + (s22/n2) ]
where s1 is the standard deviation of sample 1, s2 is the standard deviation of sample 2, n1 is the size of sample 1, and n2 is the size of sample 2.
Degrees of freedom. The degrees of freedom (DF) is:
DF = (s12/n1 + s22/n2)2 / { [ (s12 / n1)2 / (n1 - 1) ] + [ (s22 / n2)2 / (n2 - 1) ] }
Test statistic. The test statistic is a t-score (t) defined by the following equation.
t = [ (x1 - x2) - d ] / SE
where x1 is the mean of sample 1, x2 is the mean of sample 2, d is the hypothesized difference between population means, and SE is the standard error.
Accepting or rejecting null hypothesis involves comparing the P-value to the significance level, and rejecting the null hypothesis when the P-value is less than the significance level.
If the null hypothesis is rejected that means productivity of grup A is greater and hence the conclusion can be drawn that the increase in salary will motivate his staff to work more.
If the null hypothesis is rejected, and the participant belongs to group A then it means that the salary is increased for that participant.
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