Chapter 8, Problem 59PS

A national association devoted to HR and workplace programs, practices, training wants to study HR departments practices and employee turnover of its member organizations. HR professionals and organization executives focus on turnover not only because it has significant cost implications but also because it affects overall business performance. A survey is designed to estimate the proportion of member organizations that have both talent and development programme in place to drive human-capital management as well as the member organizations that have both talent and development programs in place to drive human-capital management as well as the member organizations’ mean annual employee turnover cost (cost to fill a frontline employee position left vacant due to turnover). A random sample of 100 member organizations revels the following:

Frontline employee turnover cost: $\bar{X}=\$12,500,S=\$1,000.$

Thirty member organizations have both talent and development programs in place to drive human-capital management.

a. Construct a $95\%$ confidence interval estimate for the population mean frontline turnover cost of member organizations.

b. Construct a $95\%$ confidence interval estimate for the population of member organizations that have both talent and development programs in place in drive human-capital management.

c. What sample size is needed to have $99\%$ confidence of estimating the population mean frontline employee turnover employee cost to within $\pm \$250?$

d. How many member organizations need to be selected to have $90\%$ confidence of estimating the populations of organizations that have both talent and development programs in place to drive human-drive management to within $\pm 0.045?$