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    Hypothesis testing for working time

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    You are the Vice President for Human Resources at XYZ Investment Management, Inc. Your employees have recently complained about their long working hours. You collected a sample of 25 weekly time sheets and calculated an average of 41.5 hours with a standard deviation of 2.5 hours.
    Over lunch, you discuss this problem with your long-time college friend working for Bay view Financial. She points out that in her company, the employees work an average of 42 hours. The data that she recently collected included time sheets for 35 employees. She calculated a standard deviation of 3.

    1. Which test do you have to use in order to answer the question: "Do the employees at XYZ Investment Management on average work fewer hours than the employees at Bay view Financial?"

    Please circle the correct answer:
    A. Two-sample test of means (large sample)
    B. Two-sample test of means (small sample)
    C. T-test of one mean
    D. Two sample test of proportions

    2. Please state your hypotheses, H0 and Ha, and perform the hypothesis test using the 5-step testing procedure [alpha = 0.05].

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    Solution Summary

    Step by step method for testing the hypothesis under 5 step approach is discussed here. Excel template for each problem is also included. This template can be used to obtain the answers of similar problems.