You have been given the task of formulating a drug testing policy for Roosevelt

Question

You have been given the task of formulating a drug testing policy for Roosevelt Memorial Hospital. For a long time, the Hospital has resisted an industry-wide trend to rigorous drug testing of employees. That time is apparently coming to an end. An intern at Roosevelt made a fatal mistake with a patient’s medication. This was the culmination of a pattern of erratic behavior on the intern’s part, and it was determined that he was a heavy meth user. Local media have picked up this story, with resulting major legal troubles for the hospital, not to mention acute embarrassment.

So it is your job to formulate and justify a policy for drug testing. Questions abound. Which employees are to be tested: medical, clerical, custodial, managerial? Should all employees be tested? Should the testing involve only applicants for employment, or should current employees be subject to regular or random testing? What should the personnel department do when a drug test for someone comes back positive? Should the testing use samples of urine, saliva or hair? Should the testing apply to all illegal drugs? (For the record, Roosevelt is not located in a state where marijuana has been legalized.)

Explanation / Answer

Auditors of Independent Bank are interested in comparing the reported value of all 1775 customer saving account balances with their own findings regarding the actual value of such assets. Rather than reviewing the records of each savings account at the bank, the auditors randomly selected a sample of 100 savings account balances from the frame. The sample mean and sample standard deviations were $505.75 and 360.95, respectively.  

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