Simplot Agri-Chemical has decided to implement a new incentive system for the managers of its three plants. The plan calls for a bonus to be paid next month to the manager whose plant has the greatest relative improvement over the average monthly production volume. The following data reflect the historical production volumes at the three plants:

At the close of next month, the monthly output for the three plants was

Suppose the division manager has awarded the bonus to the manager of Plant 2 since her plant increased its production by 300 units over the mean, more than that for any of the other managers. Do you agree with the award of the bonus for this month? Explain, using the appropriate statistical measures to support your position.

Transcribed Image Text:

Plant 1 Plant 2 Plant 3 μ=700 (T=200 μ=2.300 σ=350 μ=1,200 σ=30 Plant 810 Plant 2 2.600 Plant 3 1,320