BUSINESS STATISTICS ASSIGNMENT
Project Title: Employee retention at D&Y consulting firm
Group 2:Anshul Garg (11FN-015)-Finance
Kaviya .A. (11DM-057)- Marketing
Nikhil Gagrani(11DM-089)- Marketing
Sheth Dharmil Nirupam(11DM-147)-Marketing
Submission Date:- 9th September,2011
TABLE OF CONTENTS
2. Objective of the problem
3. Methodology used
5. Excel output
7. Managerial implications
CASE: EMPLOYEE RETENTION AT D&Y CONSULTING FIRM
Demand for systems ...view middle of the document...
b.) Find the 95% confidence interval for the mean starting salary of all employees who left D&Y within 3 years.
c.)Find a 95% confidence interval for the difference between the above obtained mean starting salaries.
d) Among all employees whose starting salary is below the median ($37,750), find a 95% confidence interval for the proportion who stay with D&Y for at least 3 years.
e.) Find a 95% confidence interval for the proportion who stay with D&Y for at least 3 years but this time with starting salaries above the median.
f) Find a 95% confidence interval for the difference between these proportions. From this interval, can we conclude that there is a significant difference in the proportions at the 5% level of significance?
2. D&Y wonders whether the percentage of time on the road might influence who stays and who leaves.
a. Among all employees who travel less than the median (54%), find the 95% confidence interval for the proportion who stay with D&Y for at least 3 years.
b. Do the same for the employees that travel more than the median who have stayed beyond 3 years.
c. Then find the 95% confidence interval for the difference between proportions. From this confidence interval, can we conclude that there is a significant difference in the proportions?
3.Find a 95% confidence interval for the mean tenure(in months) of all employees who leave D&Y within 3 years of being Hired. Why is it not possible with the given data to find a confidence interval for the mean tenure at D&Y among all system analysts hired by D&Y.
4.State University’s students particularly those in its nationally acclaimed CIS area, have traditionally been among the best of D&Y’s recruits.But are they relatively hard to retain?Find one or more relevant confidence intervals to help you make an argument one way or the other.
Software used: Excel
(1)Thus for calculating the confidence interval for t-distribution we have used the following equation: ẋ ± [t * (s/√n)]
In the equation: ẋ- the sample mean
t- confidence coefficient
s-sample standard deviation
(2) For calculating the confidence interval for difference between means of two different samples:-
calculating common standard deviation- sp = √((n1 – 1)s12 + (n2 – 1)s22)/(n1 + n2 – 2))
calculating standard error:- sp√(1/n1) + (1/n2)
confidence interval:- (ẋ1 - ẋ2) ± (t * SE(ẋ1 - ẋ2))
(3) For calculating the confidence interval for proportion of population:-
Formula used-ṕ ± z * √[(ṕ(1 - ṕ))/n]
In the above equation ṕ-sample proportion
1. Although starting salaries are in a rather fine band, D&Y questions whether starting compensation correlates to retention. As asked in the question, a 95% confidence interval for the mean starting salary of all employees who...