Deb wants to know if there are differences in job happiness between workers with previous experience in a particular industry and those who have no industry experience.


I’d like this to be set up using the five step process as outlined. You’ll need to select the correct inferential test in order to test your data.

Step 1: State the Null Hypothesis (H0) and the Alternate Hypothesis (H1)

Step 2: Select a Level of Significance

Step 3: Select the Test Statistic

Step 4: Formulate the Decision Rule

Step 5: Make a Decision

1. Find M. Mean for each group.
2.Find σ for each group.
3. Find z (1.96 for 95% interval; 2.58 for 99% interval) in this case as alpha is given 0.05, z is taken for 95% interval that is 1.96.
4. Lower limit = M – z σ
5. Upper limit = M + z σ
6. Lower limit μ- μ Upper limit
1. The populations are each normally distributed.
2. σ is known
3. Scores are sampled randomly and are independent
Deb wants to know if there are differences in job happiness between workers with previous experience in a particular industry and those who have no industry experience.

As you can see from the excel sheet the experienced workers sample gives us a mean of 21.5 and the workers without experience gives us a mean of 17.8 . This creates the feeling that the happiness experienced by new men entering into Deb is less than the happiness experienced by the experienced men. However, when we calculate the sample standard deviation for each group we find that the deviation of the new men who have entered Deb’s is greater than the standard deviation of the sample of men who are experienced.

If we calculate the upper and lower limits of the experienced men we find that experienced men peak at the upper limit of 26.75 and their lower limit is 16.25. Also the upper limit of the new men is 24.25 and the lower limit is 11.34. So, using a 0.05 alpha we cannot conclusively say that the experienced men will be happier again and again. There may be new men who may be happier up to the standard of the experienced men. This is because of the overlapping of the confidence levels.

The advise to Deb is:
If there is a significant difference between the salaries paid to new workers compared and the salaried paid to experienced workers, she can allow new workers to enter her place.

However, if the salaries paid are similar and experienced worker are easily available, she should go in for experienced men as they will be happier and provide her greater satisfaction.

In case, Deb is having problems hiring experienced men, then she can go in for new men and train them and they will be happy.

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