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Median Home Values: CFO/HR Policy Study
You are the Chief Financial Officer of a rapidly expanding firm. You have been tasked to work which your companies HR Director to determine the impact of company’s expansion plans on salaries. Here is the problem
The firm for which you are working is growing. They have announced that they will open facilities in ten states. Those currently working for the firm will have opportunities to re-locate at some of these new facilities. The problem faced is the following: What will be the cost of moving employees to potentially high housing cost locations. The company’s current policy is that employees moving to a location where the cost of housing is 2 standard deviations above the national average of median home prices will receive an automatic 10% salary adjustment. Therefore, you must determine in how many of the new states you will have to pay the increased salary.
The company expects to open new locations in the following ten states.
You have assembled the following data and will perform the following statistical analyses to determine in how many states the company will have to pay increased salaries.
Calculate the mean, median, and standard deviation for both the sample of new states in which you will have facilities AND calculate the mean, median and standard deviation for the national population of median home prices. You note that there are 51 observations in the population.
For the population mean construct the 95% confidence interval.
Determine how many of the sample state fall outside the confidence interval and identify the states.
Formulate an appropriate hypothesis test to determine if you suspicion is correct that the new states in which you will be building facilities have higher average median price for home than the average median price for the population.
Based on your conclusion from the hypothesis, is it likely that the firm will experience a significant increase in its salary cost.

Prepare and explain your calculations. Use the evidence to write a paper explaining your decisions: In how many and which states will increased salaries have to be paid and will the company experience a significant increase in salary costs.
Your assignment must follow these formatting requirements:
1. It must be types, double spaces and use Times New Roman font 12
2. It must have one-inch margins on all sides.
3. You are not required to cite references for formulas, definitions, etc.
4. It must have a title page and running header.


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