Incentive Pay Narrative a Company Conducted an Experiment to Determine the Effect of the Effect

question 15

Essay

Incentive Pay Narrative
A company conducted an experiment to determine the effect of two types of incentive pay plans on worker productivity for workers of two shifts. The company used an equal number of production workers from each of the two shifts and one-half of these workers were assigned to each plan. Then five workers from each pay plan-shift combination were selected and their productivity (in number of items produced) recorded for a one-week period.
The following output was generated using statistical software:
Two-way analysis of variance
-Refer to Incentive Pay Narrative. Is there significant interaction present in this ? Justify your answer. (Let = 0.05.)

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Definitions:

Periodic Inventory System

An inventory system that updates inventory balances at the end of a period, relying on physical counts to measure stock levels.

Detailed Records

Comprehensive, accurate documentation of transactions, activities, or events, maintained for reference and compliance.

Goods Held for Resale

Refers to items that a company has in its inventory that are purchased with the intention of being sold to customers rather than being used in the production process.

Gross Profit

The difference between sales revenue and the cost of goods sold before deducting overheads, payroll, taxation, and interest.