6 2 Scenario Analysis Vacation Time
6 2 Scenario Analysis Vacation Time
6 2 Scenario Analysis Vacation Time
There are multiple factors to take into consideration when determining whether employee
burnout exists. Vacation time is an important indicator, but is certainly not the only factor.
An employee’s productivity can be an important signal that burnout is imminent. Morale and
initiative are also other gauges that help determine whether this needs to be a concern.
Hₒ = µ < 1.4
HA = µ > 1.4
The t-value for this test was 2.93 and the P-Value was 0.0084. These numbers indicate that
the level of confidence that Hₒ is valid is not within 95%. We can, therefore, reject the Null
Hypothesis and say with confidence that the employees do take more than 1.4 weeks of
vacation annually.
3. What reasons should the vice-president provide to the president to justify the
recommendation on employee burnout?
While the hypothesis test does not support the claim that employees take less than 1.4
weeks of vacation a year, it does not guarantee the absence of employee burnout. As
mentioned in question one, there are multiple other factors that could contribute to and act as
an indicator for employee burn out. The vice-president would have to develop and test
If we are to base our assumptions solely on the data provided, then we could say with a
relatively large amount of confidence that employee burnout is not an issue that will negatively
impact the company currently. However, it would not be prudent to use one factor and one