Confidence Intervals and How They Affect Business Decision

Having calculated the confidence intervals for the workers whose income or wages is less than $10,000 and those whose income is between $10,000 and $40,000, it has a considerable impact on the business decision. For instance, some of the impacts or effects of the calculated confidence intervals include adverse employment and discriminatory effect. This is because, based on the business ability to raise the necessary wages, for its employees it may decide to do its recruitment based on a lower limit confidence interval or the upper limit confidence interval. As a result, this can lead to an adverse employment effect on the business. In addition, the aspect of discrimination among the employees and even the employers will remain dominant and may affect business performance.

Therefore, for a business to be on the safe said side, it is worth caring out the employment of its staff on the basis of the upper limit confidence interval thus avoiding the aspect of biasness and discrimination. For instance, for those employees with a wage of $10,000 should have their salaries computed on the upper limit confidence interval of 0.0032944. This will ensure that aspect of discrimination is eliminated hence equality in business. On the other hand, those individuals whose salary is between $10,000 and $40,000 should have their salary calculated on the upper limit of 0.01303744.


Having analyzed the conclusion that was given in week four I do agree with the fact that there is a wide wage disparity that exists. This is as far as the controllable, and some of the uncontrollable factors are concern. As a result, this conclusion should be maintained as it is also shown by the variations of the confidence interval that that have been calculated. This is because; it has an impact on the population’s wages. The factors that can lead to unequal distribution of income have been supported through the calculation of confidence interval.

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