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

question 32

Multiple Choice

A new manager,hired at a large warehouse,was told to reduce the 26% employee sick leave.The manager introduced a new incentive program for employees with perfect attendance.The manager decides to test the new program on a random sample size of 60 and found sick leave at 23%.Create a 95% confidence interval for the proportion of employee sick leave.

• A)Based on the data,we are 95% confident the proportion of employee sick leave is between 14.9% and 37.1%.
• B)Based on the data,we are 95% confident the proportion of employee sick leave is between 3.76% and 42.24%.
• C)Based on the data,we are 95% confident the proportion of employee sick leave is between 14.9% and 34.1%.
• D)Based on the data,we are 95% confident the proportion of employee sick leave is between 20% and 26%.
• E)Based on the data,we are 95% confident the proportion of employee sick leave is between 12.4% and 33.6%.

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Definitions:

Cross-Hedging

Cross-hedging involves using a hedge to manage risk by investing in a financial instrument that is not directly correlated to the underlying asset but has similar price movements.

Hedge Price

A price locked in through hedge contracts to reduce exposure to price fluctuations of commodities, currencies, or securities.

Futures Contract

A formal, uniform agreement for purchasing or selling an item at a set price at a future date, commonly utilized for trading commodities or financial instruments.

Lumber

A term for timber after it has been processed into beams and planks, a stage in the process of wood production.