Jennifer Quinn

March 23, 2018

Quantitative Analysis

6-2 Scenario Analysis: Vacation Time

1. What factors should the vice-president consider in determining the presence of

employee burnout?

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.

2. Do employees take more than 1.4 weeks of vacation?

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

another hypothesis on a different factor in order to back his recommendation.

4. Based on the data, is the presence of employee burnout an issue that may negatively
impact the company?

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

factor alone to determine such a multi-faceted issue.