Accept or reject the null hypothesis?

Abstract

The basis or foundation to conducting accurate research initially takes
place with a company first developing a hypothesis pertaining to an idea
of what to study but one must also confirm that the hypothesis that is
being investigated is either true or false. A hypothesis is something
that is taken as the truth for the purpose of an argument or
investigation but must be proven true through research. Blue Cross Blue
Shield has drawn up a hypothesis that requires the implementation of Six
Sigma to solve their employee’s performance issues, which have lead to
low morale due to a lack of training. If the current null hypothesis is
not the true problem then Blue Cross Blue Shield must have an
alternative hypothesis to further prove and solve their current issue.

Advanced Hypothesis Testing Paper

Introduction

To improve a company’s customer service one must conduct research to
find the root of the problem. In the case with Blue Cross Blue Shield,
the company has realized from their reports that there is a strong
concern of ongoing customer complaints, low call volume as well as high
employee turnover. From the results produced through a variety of
research, Blue Cross Blue Shield has defined their null hypothesis is
due to a lack of formal training. If the null hypothesis is rejected
based on the research, Blue Cross and Blue Shield must find an Alternate
hypothesis which will accurate determine what is causing low morale
issues within the company.

Null Hypothesis

The current problem with Blue Cross Blue Shield is that turnover volumes
have increased which thereby has increased low call volume and negative
feedback on customer service among other tribulations that face BCBS
such as low morale which has been exhibited by the current staff. Low
morale issues have produced a significant level of dissatisfied and
unhappy customers. To solve this problem, Blue Cross Blue Shield
believes that introducing Six Sigma’s Logic of Hypothesis Testing
along with performance management training will significantly increase
employee production and morale; increase call center volume and overall
improve upon customer satisfaction.

To help with the research, Blue Cross Blue Shield will hire and
outsource consultants to issue surveys and conduct surveys on customers
and employees followed by a review and analysis stage of surveys
captured and then recommended changes will be implemented throughout the
organization. By testing the null hypothesis Blue Cross Blue Shield will
uncover the reasons for high turnover and low-call volume. The results
will be origins to solutions to take care of the problem. The results
must be confirmed or rejected. If the ultimate result is rejected than
the next step will be to define an alternate hypothesis.

Alternate Hypothesis

If the null hypothesis is rejected then the alternate hypothesis will be
used to help solve Blue Cross Blue Shields customer service problem.
Alternative Hypothesis describes what one will conclude if the null
hypothesis is rejected from the results obtained (Bass, n.d.). The
alternate hypothesis determined that the major cause of turnover was not
contributed to merely a lack of morale, but a lack of training within
the call center of Blue Cross Blue Shield. A lack of proper training
leads to unhappy employees and less knowledgeable staff, which
ultimately leads to significant turnover. Significant turnover leads to
low morale, over worked employees thereby having a limited amount of
qualified available call agents which produces unsatisfied customers
that ultimately will effect the company’s bottom-line. The third step
in identifying the alternate hypothesis involved the analysis of the
level of significance.

Level of Significance for Consumer Research

Level of Significance is the probability of rejecting the null
hypothesis when it is true (Bass, n.d.). When the survey was given to
Blue Cross Blue Shield employees, the results showed 20% of the
employees were not satisfied with their salaries and growth within the
company. The results also showed 80% of their employees was not happy
with the training. Blue Cross Blue Shield would like for their helpdesk
department to rank at 90% customer satisfaction, but to accomplish this
goal Blue Cross Blue Shield must correct the current problems with their
employees.

In determining the level of significance, Blue Cross Blue Shield’s
industry standard consisted of .10 Basic Researches to include Polling
and Surveys. Further surveys were conducted of staff members and
management in determining the success of the Six Sigma Principles once
the training cycles have been completed. The consultants will compare
previous polls and surveys, to current polls and surveys conducted for
the purpose of identifying Blue Cross Blue Shields Advanced Hypothesis,
which revealed that employees became better, educated through the new
features of training throughout the call center environment using Six
Sigma Principles.

Test Statistic and Formulate the Decision Rule

To perform this test Blue Cross Blue Shield will use the chi-square to
calculate the survey results. A chi square (X2) statistic is used to
investigate whether distributions of categorical variables differ from
one another (Bass, n.d.). Blue Cross Blue Shield must find what is
causing the low morale for their staffs’ performance as well as
finding a solution on how to improve their morale. The two categories
that will be tested will be training and pay. From a ranking from 1 to
10 on the employees’ survey, the seven help desk employees ranked
training between 8 and 10 and pay/growth from 5 to 6. The management
team expected training would have been ranked between 6 and 8 and
pay/growth ranked from 8 to 10, which the results for training was much
higher than Blue Cross Blue Shield had expected.

Make a Decision (Reject or Accept)

After extensive surveys and calculations the test results have shown
training has been the root problem for Blue Cross Blue Shield help desk
employees. Though pay and growth within the company is a problem the
major problem is the lack of understanding Blue Cross Blue Shield
products. Max could you help me write more details. I hope you are
feeling better.

Conclusion

In the end,



References

Bass, I. (n.d.). Six sigma first. Retrieved April 14, 2007 from
http://www.sixsigmafirst.com

/chi_square_test.htm

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Advanced Hypothesis Testing