A company is using a system of payment by results
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A company is using a system of payment by results

Question -8 

A company is using a system of payment by results. The union claims that this seriously discriminates against newer workers. There is a fairly steep learning curve which workers follow with the apparent outcome that more  experienced workers can perform the task in about half of the time taken by a new employee. You have been asked to find out if there is any basis for this claim. To do this, you have observed ten workers on the shop floor,

timing how long it takes them to produce an item. It was then possible for you to match these times with the length of the workers’ experience. The results obtained are shown below:


a. Construct a scatter diagram for this data.

b. Find the regression line of time taken on months’ experience.

c. Place the regression line on the scatter diagram.

d. Predict the time taken for a worker with:

(i) four months’ experience;

(ii) five years’ experience.

e. Comment on the union’s claim.

Hint
Statisticsa). A scatter diagram which is also known as scatter plot or scatter graph is a statistical tool for analyzing relationships between two variables by determining how closely the two variables are related. One variable is plotted on the horizontal axis and the other is plotted on the vertical axis to develop a scatter diagram....

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