Different kinds of companies cmpensate their key employees in different ways. Established companies may pay higher salaries, while new companies may offer stock options that will be valuable if the company succeeds. Do high-tech companies tend to offer stock options more often than other companies? One study looked at a random sample of 200 companies. Of these, 85 were listed in the Directory of Public High Technology Corporations and 115 were not listed. Treat these two groups as SRS's of high-tech and non-high-tech companies. 72 of the high-tech companies and 68 of the non-high-tech companies offered incentive stock options to key employees. A) Is there evidence that a higher proportion of high-tech companies offer stock options? (use a=.05) z =_______________ P-value +_________________ Conclusion: a or b a) There is significant evidence that a higher proportion of high-tech companies offer stock options. b) There is no evidence that a higher proportion of high-tech companies offer stock options. B) Give a 90% confidence interval for the size of the difference. Lower bound: ________________ Upper bound: ________________

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Different kinds of companies cmpensate their key employees in different ways. Established companies may pay higher salaries, while new companies may offer stock options that will be valuable if the company succeeds. Do high-tech companies tend to offer stock options more often than other companies? One study looked at a random sample of 200 companies. Of these, 85 were listed in the Directory of Public High Technology Corporations and 115 were not listed. Treat these two groups as SRS's of high-tech and non-high-tech companies. 72 of the high-tech companies and 68 of the non-high-tech companies offered incentive stock options to key employees.

A) Is there evidence that a higher proportion of high-tech companies offer stock options? (use a=.05)

z =_______________

P-value +_________________

Conclusion: a or b

a) There is significant evidence that a higher proportion of high-tech companies offer stock options.

b) There is no evidence that a higher proportion of high-tech companies offer stock options.

B) Give a 90% confidence interval for the size of the difference.

Lower bound: ________________

Upper bound: ________________

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