Circuit Systems Analysis

Executive Summary

Circuit Systems, Inc. has introduced a new employee incentive program with the goal of

reducing employee absenteeism. The program provides the employees with an option of turning any unused sick days into a 1/3 of day’s pay. The other aspect of the program is to subsidize a free health club membership for those employees who exercise three days a week, outside of normal work hours. Circuit System’s insurance company has also agreed to implement a reduced insurance premium since they are offering this incentive.

The program is being evaluated for its effective after being in place for one year. This evaluation will determine whether the new program has successfully reduced the average cost per hourly worker by going to the new program

Our task is to determine;

1. Does the new plan successfully reduce absenteeism?

2. Should Circuit systems continue with the new Sick-Time program and the Exercise program?

To determine if the new plan was successful, we made some observations about the data.

1. Assumed normally distributed.

2. The two years of absenteeism data are matched, meaning the same employees are monitored and the only thing that has changed is the policy.

Pair T-Test is used to answer the question, is there a mean different between the two data sets using a level of significant of α =0.05.

Paired t Test | |

| |

Data | |

Hypothesized Mean Diff. | 0 |

Level of significance | 0.05 |

| |

Intermediate Calculations | |

Sample Size | 233 |

DBar | 4.4775 |

degrees of freedom | 232 |

SD | 2.8975 |

Standard Error | 0.1898 |

t Test Statistic | 23.5882 |

| |

Upper-Tail Test | |

Upper Critical Value | 1.6514 |

p-Value | 0.0000 |

Reject the null hypothesis | |

Paired t Test | |

| |

Data | |

Hypothesized Mean Diff. | 0 |

Level of significance | 0.05 |

| |

Intermediate Calculations | |

Sample Size | 233 |

DBar | 4.4775 |

degrees of freedom | 232 |

SD |...