Incentive Pay Narrative a Company Conducted an Experiment to Determine the Effect of the Effect
Incentive Pay Narrative
A company conducted an experiment to determine the effect of two types of incentive pay plans on worker productivity for workers of two shifts. The company used an equal number of production workers from each of the two shifts and one-half of these workers were assigned to each plan. Then five workers from each pay plan-shift combination were selected and their productivity (in number of items produced) recorded for a one-week period.
The following output was generated using statistical software:
Two-way analysis of variance
-Refer to Incentive Pay Narrative. Based on your answer to the previous question, is testing for the main effects, plan and shift, appropriate? Give reasons for your answer.
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