Hypothesis testing can be important when developing performance standards for
your subordinates. Each of you will be a manager, and each of you will
therefore need to develop performance standards which will clearly allow you
(and your subordinate) to agree as to whether or not the subordinate met your
requirement. You do not want to end a rating period with disagreement on the
subordinate’s performance, and you do not want to lose a grievance to upper
management should the subordinate appeal your performance rating. (A
subordinate certainly has every right to appeal, but you should never lose an
Suppose that you are manager of a restaurant, and need to develop a series of
performance standards for each member of your staff. The restaurant is a
full-service restaurant, with seated customers, menus, a hostess to meet
customers and seat customers, etc. Examples might include Joe Theismann’s,
an IHOP, an Outback Steakhouse, etc.
For this case study, develop one measurable, numeric performance standard for
a member of the wait staff. Then show how you could take a random sample of
30 readings of the performance and develop a hypothesis test using the t
statistical method to determine, at 95% confidence, if the performance
standard was met. List 30 notional (hypothetical) “readings” and calculate
a corresponding notional t-test to show how your subordinate hypothetically
performed. You will need to calculate the sample mean, sample standard
deviation, use the t table in the back of the book, etc., to complete the
analytics. You must use Excel to log your data and perform many or all of
your analytics, and you will submit your Excel file (and any other files you
may find convenient to submit such as photos of your calculations if done
long-hand). This may be a one-tail test.
At the 95% confidence level, using the notional data, can you conclude that
the subordinate is meeting your standard
always thank you...
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