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(Solution document) Employee Turnover: The HR manager at a hotel chain is concerned about turnover. Currently the turnover among front desk staff is 42%.


Employee Turnover: The HR manager at a hotel chain is concerned about turnover. Currently the turnover among front desk staff is 42%. The company is considering running a retention program through increased benefits in order to reduce its turnover. It randomly chose 320 front desk staff, and offered them this program.


A. Specify the appropriate hypothesis to test whether the program is working.


B. What percentage of these 320 must stay on to reject the null hypothesis (assume at 5% significance level)?


C. Suppose the actual quit rate among employees who receive these new benefits is 35%. Do you have sufficient evidence to conclude that the retention program is working? Calculate the p-value and interpret it. 

 







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