A Researcher Working at a Particular Company Wants to Know

question 93

Essay

A researcher working at a particular company wants to know if workers' health would improve if they were given extra days 'off. In this company, all workers undergo a standard physical exam twice a year and after each exam an overall health rating (higher scores mean better health)is automatically provided to the company. To conduct the study, the researcher selected five workers at random. She then arranged to have these five workers receive an additional 2 days off every month over the period between health exams. She then compared the health scores on the two exams. Do the results shown in the table below support the notion that extra days off improves health? (Use the .05 level.)
a. Use the five steps of hypothesis testing
b. Figure the effect size and find the approximate power of this study.
c. Explain your results.
Health Rating, Before and After Period of Extra Days Off
Worker Before After
A 75 81
B 66 67
C 44 46
D 86 88
E 89 89

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Fair Value

The estimated market value of an asset or liability, based on current prices in an active market.

Acquisition Method

The acquisition method is an accounting technique used in consolidations to combine the financial statements of a parent company and its subsidiary, recognizing the acquired assets and liabilities at their fair values.

Consolidated Balance Sheet

A financial statement that summarizes the financial position of a parent company and its subsidiaries, presenting assets, liabilities, and equity as if the group were a single entity.