A company was thinking about instituting a policy that allowed for no limits to the number of sick days that employees could take rather than limiting the number of paid sick days. The data are in the file “sick leave.” Each column represents a different sample of employees during the trial period.
There are 4 parts to this question.
A) Explain why an alpha level of 0.05 is appropriate for the test (compared to, say, 0.01 or 0.001).
B) What are we doing by setting an alpha level? Explain it for the layperson.
C) What is the null hypothesis and alternate hypothesis? (Do not worry about formatting the statements - I'll get it from what you write.)
D) Conduct the t-test at α = 0.05, and report the results and conclusion. Provide in your statement the necessary statistics to support your answer.
Sample Solution