Many companies are experimenting with “flex-time,” allowing employees to choose their schedules within broad limits set by management. Among other things, flex-time is supposed to reduce absenteeism. One firm knows that in the past few years, employees have averaged 6.3 days off from work (apart from vacations). This year, the firm introduces flex-time. Management chooses a simple random sample of 100 employees to follow in detail, and at the end of the year, these employees average 5.5 days off from work, and the sample standard deviation (SD) is 2.9 days. (a) Did absenteeism really go down, or is this just chance variation? Formulate the null and alternative hypotheses and carry out the testing. (b) Repeat the above for a sample average of 5.9 days and an SD of 2.9 days.

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2. Many companies are experimenting with “flex-time,” allowing employees to choose their schedules
within broad limits set by management. Among other things, flex-time is supposed to reduce absenteeism. One firm knows that in the past few years, employees have averaged 6.3 days off from work
(apart from vacations). This year, the firm introduces flex-time. Management chooses a simple random
sample of 100 employees to follow in detail, and at the end of the year, these employees average 5.5
days off from work, and the sample standard deviation (SD) is 2.9 days.
(a) Did absenteeism really go down, or is this just chance variation? Formulate the null and alternative
hypotheses and carry out the testing.
(b) Repeat the above for a sample average of 5.9 days and an SD of 2.9 days.

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