You having two employees working on commission - employee A and employee B. Over the course of 80 weeks, you observe the sales of each employee. Let X = the number of times employee A has more sales than employee B. You build the following line of reasoning:
Steps
1) You assume each sales observation is an independent, random outcome.
2) You assume each employee has equal likelihood of have greater sales in a week.
3) Using your statistics book, you conclude that X is distributed binomial with mean 40 and variance 20.
4) Based on this distribution, you conclude that you would observe X < 32 or X > 48 approximately 5% of the time.
5) You observe X = 53 and conclude that the probability that X < 32 or X > 48 is not 5%.
6) Because the probability that X < 32 or X > 48 is not 5%, you conclude employee A and employee B do not have equal likelihood of having greater sales in a week.
Which of these steps is part of inductive reasoning?
A) Step 4 only
B) Steps 5 and 6 only
C) Steps 1, 2, and 3 only
D) Step 5 only
Correct Answer:
Verified
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