Advanced Hypothesis Testing

Essay by ibkensterUniversity, Bachelor'sA+, May 2006

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We will identify the feasibility of hiring temporary employees as opposed to working current employees into overtime at Proctor & Gamble (P&G). For example, P&G employees earn an average of $25 dollars per hour and are entitled to many benefits like medical, dental, vision, and various employee assistance benefits. By hiring temporary employees, P&G circumvent the need for benefits to that group of people.

P&G is a global corporation, employing over 98,000 people throughout the world. Recently, the company was rated fifth for the quality of its products and services and fourth for innovation. Overall, P&G was ranked fourth on the Fortune list of the top five most admired companies (P&G, n.d.).

P&G has one of the largest and strongest portfolios of trusted brands, including Pampers, Tide, Ariel, Always, Pantene, Bounty, Folgers, Pringles, Charmin, Downy, Iams, Crest, Actonel and Olay (P&G, n.d.). The United States has different manufacturing plants in: Phoenix, Arizona, Russellville, Arkansas, Oxnard, Anaheim, and Sacramento, California, Dover, Delaware, Albany, Atlanta, and Augusta, Georgia, Iowa City, Iowa, Kansas City, Kansas, Alexandria and New Orleans, Louisiana, Auburn, Maine, Hunt Valley, Maryland, Aurora, Nebraska, Avenel and South Brunswick, New Jersey, Greensboro and Henderson, North Carolina, Cincinnati (H.Q.),

Lima, Leipsic, and Lewisburg, Ohio, Mehoopany, Pennsylvania, North Sioux, South Dakota, Jackson, Tennessee, Sherman, Texas, Green Bay, Wisconsin, and Cayey, Puerto Rico (P&G. n.d.).

Our advanced null hypothesis is that by using temporary employees, Proctor & Gamble will spend greater than or equal to what salaried employees earn. Our alternate is that Proctor & Gamble will spend equal to or less than what salaried employees are paid. The level of significance is 95%.

The test statistic used is the one sample t-test. T equals the mean minus the population mean divided by the sample divided by the square root of the number.

The decision rule is to accept the alternate hypothesis because the critical values fall within range.

Descriptive Statistics: Wages/hr

Variable N N* Mean SE Mean StDev Minimum Q1 Median Q3

Wages/hr 35 1 13.471 0.265 1.567 10.500 12.500 13.500 15.000

Variable Maximum

Wages/hr 17.000

One-Sample Z: Wages/hr

The assumed standard deviation = 1.567



Variable N Mean StDev SE Mean Bound

Wages/hr 35 13.4714 1.5669 0.2649 13.9071

One-Sample T



N Mean StDev SE Mean Bound

35 13.4710 1.5670 0.2649 13.9189


Proctor & Gamble. Retrieved March 23, 2006 from: