Question: You want to know if a new employee incentive program really works, so you set up a study.

1. What is your independent variable?
2. What is your dependent variable? You will have to decide this – how could you measure whether an employee incentive program works? (Note that there are several ways to measure this – think up, or look up, a type of ratio variable you could use as a dependent variable).
3. Decide whether you should use a research or a null hypothesis. Why did you choose this type of hypothesis? Choose carefully because the answer to a subsequent question depends on it!
4. To set up a hypothesis testing procedure, what would be your comparison distribution and why?
5. Decide on a probability to test your hypothesis. Why did you select this probability level? (2 points)
6. Given your hypothesis and your probability level, what would be your cut-off score? (2 points)
7. Outline the steps of your hypothesis testing procedure for this study. (5 points)

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Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document