8.41 Facial structure of CEOs. Refer to the Psychological Science (Vol. 22, 2011) study on using a chief executive officer's facial structure to predict a firm's financial performance, Exercise 7.21 (p. 325). Recall that the facial width-to-height ratio (WHR) for each in a sample of 55 CEOs at publicly traded Fortune 500 firms was determined. The sample resulted in x=1.96 and s = .15. An analyst wants to predict the finan- cial performance of a Fortune 500 firm based on the value of the true mean facial WHR of CEOs. The analyst wants to use the value of μ = 2.2. Do you recommend he use this value? Conduct a test of hypothesis for μ to help you answer the question. Specify all the elements of the test: Ho, Ha, test statistic, p-value, a, and your conclusion.

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8.41 Facial structure of CEOs. Refer to the Psychological Science
(Vol. 22, 2011) study on using a chief executive officer's facial
structure to predict a firm's financial performance, Exercise
7.21 (p. 325). Recall that the facial width-to-height ratio
(WHR) for each in a sample of 55 CEOs at publicly traded
Fortune 500 firms was determined. The sample resulted in
x=1.96 and s = .15. An analyst wants to predict the finan-
cial performance of a Fortune 500 firm based on the value
of the true mean facial WHR of CEOs. The analyst wants
to use the value of μ = 2.2. Do you recommend he use this
value? Conduct a test of hypothesis for μ to help you answer
the question. Specify all the elements of the test: Ho, Ha, test
statistic, p-value, a, and your conclusion.
Transcribed Image Text:8.41 Facial structure of CEOs. Refer to the Psychological Science (Vol. 22, 2011) study on using a chief executive officer's facial structure to predict a firm's financial performance, Exercise 7.21 (p. 325). Recall that the facial width-to-height ratio (WHR) for each in a sample of 55 CEOs at publicly traded Fortune 500 firms was determined. The sample resulted in x=1.96 and s = .15. An analyst wants to predict the finan- cial performance of a Fortune 500 firm based on the value of the true mean facial WHR of CEOs. The analyst wants to use the value of μ = 2.2. Do you recommend he use this value? Conduct a test of hypothesis for μ to help you answer the question. Specify all the elements of the test: Ho, Ha, test statistic, p-value, a, and your conclusion.
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