Answer:
The new incentive program cuts down on the number of days missed by employees.
Step-by-step explanation:
In this case we need to test whether the new incentive program cuts down on the number of days missed by employees.
The hypothesis can e defined as follows:
<em>H₀</em>: The new incentive program does not cuts down on the number of days missed by employees, i.e. <em>d</em> ≥ 0.
<em>Hₐ</em>: The new incentive program cuts down on the number of days missed by employees, i.e. <em>d</em> < 0.
The paired <em>t</em>-test would be used in this case as the data provided is a matched paired data.
The mean and standard deviation of the differences are computed in the Excel sheet.
Compute the test statistic as follows:
The test statistic value is 3.161.
The degrees of freedom is:
df = n - 1 = 10 - 1 = 9
Compute the <em>p</em>-value of the test as follows:
*Use a <em>t</em>-table.
The <em>p</em>-value of the test is 0.0058.
Decision rule:
If the <em>p</em>-value of the test is less than the significance level, 0.05, the null hypothesis will be rejected.
<em>p</em>-value = 0.0058 < 0.05
The null hypothesis will be rejected.
Hence, it can be concluded that the new incentive program cuts down on the number of days missed by employees.