Suppose you want to estimate the average number of years employees have worked at your company...

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Suppose you want to estimate the average number of yearsemployees have worked at your company so far. You take a randomsample of 100 workers and you find the average number of years theyhave worked at your company so far is 10 years. (Assume thestandard deviation for number of years worked is known to be 2years.)
Let X be the number of years an employee has worked at thiscompany. Assuming this company has been around for a long time, youmight expect the distribution of X to be skewed to the right, andhence does NOT have a normal distribution. Explain why this mightbe the case.
Find a 95% confidence interval for the average number of yearsworked for employees over the whole company.
Explain why you could not do the previous problem (and use aformula involving a Z value) without use of the Central LimitTheorem. Remember, X does not have a normal distribution!
Why are the proper conditions met in order to use the CLT here?Explain.

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3.8 Ratings (597 Votes)

Part 1 Since the company has been around for a long time the weightage to the length of employement for the older employees would be very high and so the distribution would tend to be skewed See Answer

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