In an article in the Journal of Management, Joseph Martocchio studied and estimated the costs of employee absences. Based on a sample of 176 blue-collar workers, Martocchio estimated that the mean amount of paid time lost during a three- month period was 1.4 days per employee with a standard deviation of 1.3 days. Martocchio also estimated that the mean amount of unpaid time lost during a three- month period was 1.0 day per employee with a standard deviation of 1.8 days. Suppose we randomly select a sample of 100 blue-collar workers. Based on Martocchio's estimates: a. What is the probability that the average amount of paid time lost during a three- month period for the 100 blue-collar workers will exceed 1.5 days? Assume σ equals 1.3 days. b. What is the probability that the average amount of unpaid time lost during a three-month period for the 100 blue-collar workers will exceed 1.5 days? Assume σ equals 1.8 days. c. Suppose we randomly select a sample of 100 blue-collar workers, and suppose the sample mean amount of unpaid time lost during a three-month period actually exceeds 1.5 days. Would it be reasonable to conclude that the mean amount of unpaid time lost has increased above the previously estimated 1.0 day? Explain. Assume σ still equals 1.8 days.

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Ex. 1: In an article in the Journal of Management, Joseph Martocchio studied and
estimated the costs of employee absences. Based on a sample of 176 blue-collar
workers, Martocchio estimated that the mean amount of paid time lost during a three-
month period was 1.4 days per employee with a standard deviation of 1.3 days.
Martocchio also estimated that the mean amount of unpaid time lost during a three-
month period was 1.0 day per employee with a standard deviation of 1.8 days.
Suppose we randomly select a sample of 100 blue-collar workers. Based on
Martocchio's estimates:
a. What is the probability that the average amount of paid time lost during a three-
month period for the 100 blue-collar workers will exceed 1.5 days?
Assume σ equals 1.3 days.
b. What is the probability that the average amount of unpaid time lost during a
three-month period for the 100 blue-collar workers will exceed 1.5 days?
Assume σ equals 1.8 days.
c. Suppose we randomly select a sample of 100 blue-collar workers, and suppose
the sample mean amount of unpaid time lost during a three-month period actually
exceeds 1.5 days. Would it be reasonable to conclude that the mean amount of
unpaid time lost has increased above the previously estimated 1.0 day? Explain.
Assume σ still equals 1.8 days.

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