A New Manager,hired at a Large Warehouse,was Told to Reduce

question 10

Multiple Choice

A new manager,hired at a large warehouse,was told to reduce the employee sick leave.The manager introduced a new incentive program for employees with perfect attendance.Suppose the proportion of the employees sick prior to the new program is
And the employees sick after the new program is
.A study found a 98% confidence interval for
-
Is (-0.0668,0.1125) .Give an interpretation of this confidence interval.

• A)We know that 98% of the employees sick after the new program is between 6.68% less and 11.25% more than the employees sick prior to the new program.
• B)We are 98% confident that the proportion of the employees sick prior to the new program is between 6.68% less and 11.25% more than the proportion of the employees sick after the new program.
• C)We know that 98% of all random samples done on the population will show that the proportion of the employees sick prior to the new program is between 6.68% less and 11.25% more than the proportion of the employees sick after the new program.
• D)We know that 98% of the employees sick prior to the new program is between 6.68% less and 11.25% more than the employees sick after the new program.
• E)We are 98% confident that the proportion of the employees sick after the new program is between 6.68% less and 11.25% more than the proportion of the employees sick prior to the new program.

---

Definitions:

Marginal Social Cost

The total cost to society of producing an additional unit of a good or service, including both private costs and external effects.

External Social Cost

Costs of production or consumption that affect individuals not involved in the transaction, often unaccounted for by the market price.

Efficient Level

Describes a state where resources are allocated in the most effective manner, maximizing output and outcomes.

Marginal Social Benefit

The incremental advantage to the community from the consumption or production of an additional unit of a product or service.