A Manager Is Thinking of Providing, on a Regular Basis

question 36

Essay

A manager is thinking of providing, on a regular basis, in-house training for employees preparing for an inventory management certification exam. In the past, some employees received the in-house training before taking the exam, while others did not. Independent random samples taken from the company's records provided the following exam scores for 10 workers who did not receive in-house training and 8 workers who did receive training. (The manager is confident that the distributions of both populations' exam scores are approximately normal.)

a. Develop a 95% confidence interval estimate for the difference between the average test scores for the two populations of employees.
b. Using a = .05, test for any difference between the average test scores for the two populations of employees.

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Definitions:

Straight Life

In the context of life insurance, a straight life policy offers a guaranteed death benefit and lifetime coverage with fixed premium payments.

Universal Life

A type of flexible permanent life insurance that offers the low-cost protection of term life insurance as well as a savings element, which is invested to provide a cash value buildup.

Protection

Measures taken to safeguard something or someone against harm or damage.

Life Insurance

A contract between an insurer and a policyholder in which the insurer pays a designated beneficiary a sum of money upon the death of the insured person.