HR_​Hypothesis_​Testing

Part 2: Is our company’s average Monthly Income significantly different from the national average which is $6,200?

State the Null Hypothesis (H0) and Alternative Hypothesis (Ha).

H0: AVG company income is NOT significantly different from national average.

H1: AVG company income IS significantly different from the national average

• Q2.1: What is the sample mean of the Monthly Income for our cleaned dataset?

5502.7632743362865

• Q2.2: What is the p-value for this two-tail test?

2.0254241948458276E-14 (Effectivley Zero)

• Q2.3: Based on a significance level of 0.05 and the p-value rule from Chapter 8, do you reject or fail to reject the null hypothesis? Write a one-sentence conclusion for the CEO.

Based on my data analysis, our average company income is statistically different compared to other companies.

part 3

State the Null Hypothesis (H0) and Alternative Hypothesis (Ha).

H0: Turnover rate is within acceptable levels

H1: turnover rate is unacceptably high

• Q3.1: What is the sample proportion of attrition (the Mean of Attrition Numeric)?

0.1710914454277284

• Q3.2: What is the calculated one-tail p-value?

6.683157989446693E-7

• Q3.3: Based on a significance level of 0.05, do you reject or fail to reject the null

hypothesis? Is there statistical evidence for the HR director to be worried?

The HR director should be worried after looking at the evidence

State the Null Hypothesis (H0) and Alternative Hypothesis (Ha).

• Q4.1: Looking at the Crosstab view, which department had the highest raw count of

“Yes” for Attrition?

Research and development

• Q4.2: Look at the Statistics output. What is the Chi-Square test statistic, the degrees

of freedom (df), and the exact p-value?

Chi-square: 9.844249304801563

df:2

p-value: 0.007283639193927693

• Q4.3: Using a 0.05 significance level, do you reject or fail to reject the null hypothesis?

What does this mean in plain English regarding Departments and Attrition?

An employees departments and if they leave are linked and does affect whether they leave or not.