In an Effort to Improve Productivity in Its Factory,a Firm

question 107

Essay

In an effort to improve productivity in its factory,a firm recently instituted a training program for its workers.One of the work crews consisted of 14 workers.Seven workers from this crew were selected at random to attend the training course.All seven workers selected successfully completed the training course.The remaining seven workers served as a control group and did not attend the training course.Three months after the training course,a supervisor who did not know which employees attended the training course was asked to rank all 14 employees in terms of their productivity.A rank of 14 indicates the most productive employee in the crew while a rank of one indicates the least productive worker. $$\begin{array} { c c } \text { Trained Ranks } & \text { Untrained Ranks } \\7 & 6 \\12 & 2 \\14 & 9 \\4 & 3 \\8 & 1 \\13 & 5 \\10 & 11\end{array}$$
-At a = .05,can it be concluded that training was beneficial in improving productivity?

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Definitions:

Marginal Product

Represents the additional output that can be produced by adding one more unit of a specific input, keeping all other inputs constant.

Isoquant

A curve that represents all the combinations of inputs that produce the same level of output in the production of goods.

Output

The total amount of goods or services produced by a company, industry, or economy.

Average Educational Level

A metric that represents the average amount of formal schooling completed by a population or specific group of people.