A Fast-Food Company Uses Two Management-Training Methods

question 86

Short Answer

A fast-food company uses two management-training methods. Method 1 is a traditional method of training, and Method 2 is a new and innovative method. The company has just hired 31 new management trainees. 15 of the trainees are randomly selected and assigned to the first method, and the remaining 16 trainees are assigned to the second training method. After three months of training, the management trainees take a standardized test. The test was designed to evaluate their performance and learning from training. The sample mean score and sample standard deviation of the two methods are given below. The management wants to determine if the company should implement the new training method.
Is there evidence at α = .01 to conclude that the new training method is more effective than the traditional training method?

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Definitions:

Production

The process or activity of creating goods and services through the combination of labor, capital, and natural resources.

Economies of Scale Monopoly

A market scenario where a single firm can produce goods at a lower cost per unit due to its large scale of production as compared to smaller competitors.

Natural Monopoly

A market condition where due to high fixed costs or unique product, a single supplier is most efficient in serving the entire market demand.

Single-Firm Production

The manufacturing or creation of products by one company, without relying on external firms for major components or processes.