Question

Frontline employee turnover​ cost: X overbar equals=​$10,900, S=​$2300. Thirty-two member organizations have both talent and development programs in place to drive​ human-capital management.

Construct a 99​% confidence interval estimate for the population mean frontline employee turnover cost of member organizations.

Answer 1

)solution

Given that,

= $10900

s =$2300

n = 32

Degrees of freedom = df = n - 1 =32 - 1 = 31

At 99% confidence level the t is ,

= 1 - 99% = 1 - 0.99 = 0.01

/ 2 = 0.01 / 2 = 0.005

t /2  df = t0.005,31 =   2.744    ( using student t table)

Margin of error = E = t/2,df * (s /n)

= 2.744 * (2300 / 32) = 1115.6731

The 99% confidence interval estimate of the population mean is,

- E < < + E

10900 - 1115.6731 < <10900 + 1115.6731

9784.3269 < < 12015.6731

( 9784.3269 , 12015.6731)