Ed Spence began his sprocket business 20 years ago. The business has grown over the years and now employs 40 people. Spence Sprockets, Inc. faces some major decisions regarding health care for these employees. Before making a final decision on what health care plan to purchase, Ed decides to form a committee of five representative employees. The committee will be asked to study the health care issue carefully and make a recommendation as to what plan best fits the employees’ needs. Ed feels the views of newer employees toward health care may differ from those of more experienced employees.
1) If Ed randomly selects this committee, what can he expect in terms of the mean years with Spence Sprockets for those on the committee?
2) How does the shape of the distribution of years of experience of all employees (the population) compare with the shape of the sampling distribution of the mean? Compute dotplots using Megastat to compare the two distributions. Comment on what you see.
What is the range for the length of service in the population that will include:
a. 68%% of the data?
b. 95% of the data?
c. 99% of the data?
d. What about 93% of the data
The lengths of service (rounded to the nearest year) of the 40 employees currently on the Spence Sprockets, Inc. payroll are as follows:
11, 4, 18, 2, 1, 2, 0, 2, 2, 4,
3, 4, 1. 2, 2, 3, 3, 19, 8, 3,
7, 1, 0, 2, 7, 0, 4, 5, 1, 14,
16, 8, 9, 1, 1, 2, 5, 10, 2, 3,
What principles of data behavior to we need to use to understand this problem?
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