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Statistics 22 Online
OpenStudy (anonymous):

There are also potential problems associated with interpreting the results of a paired t-test. Imagine you are interested in determining whether an employee of a company performs better with or without a bonus. What are some issues that could affect the results if you have the same subjects tested in both situations?

OpenStudy (koikkara):

hmm, i would say, There are several advantages of using a paired t-test. Since the same subjects are being tested in each of the varying conditions, those subjects serve as their own control. This is a major advantage as you need not consider potential differences between the subjects in the control group and the subjects who are in the experimental group. @slomomo

OpenStudy (anonymous):

Cant read the reference you provided it is in a different language!

OpenStudy (anonymous):

This is what I came up with so if anyone could review it to see if I have the right idea for a paired t-test on determining statistically if an employee would perform better due to a bonus. How would you respond, if a bonus was taken away? Using "the same subjects tested in both situations" would lead this to happen. If you conduct a paired test this would be the result because in order to see if one works better or performs better because they make more money could motivate some to do a better job, but at the same time in doing so you would have to have like group A. Are told they have just received a bonus and are asked to be part of a group to see if performance changes with a raise. Group B. would be ones judged just on their performance. Then compare the data to see if indeed a bonus will change work performance. Independent variable No employee reward system Employee reward system ‐ Cash bonus ‐ Stock dividends ‐ Stock option Dependent variable Earnings per share H1‐1 / H3‐1 Return on assets H1‐2 / H3‐2 Return on equity H1‐3 / H3‐3

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