In a sample of 1702 companies from year 2000, there are 1253 companies that pay a stock dividend to its shareholders, there are 878 companies that pay their CEO’s over $1 million in total compensation, and there are 673 firms that pay a dividend and pay their CEO’s over $1 million in total compensations. The following table describes this joint distribution. DividendNot DividendTotalOver $1 Million673205878Not over $1 million580244824Total12534491702 When testing the hypothesis (using the 5% level of significance) that the compensation of the CEO and whether the company pays a dividend are independent, if the p-value .003 what would you conclude concerning the null hypothesis? reject the null hypothesis that the variables are independent fail to reject the null hypothesis that the variables are independent

Given Level of significance=ɑ=0.05

Answered: In a sample of 1702 companies from year…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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In a sample of 1702 companies from year 2000, there are 1253 companies that pay a stock dividend to its shareholders, there are 878 companies that pay their CEO’s over $1 million in total compensation, and there are 673 firms that pay a dividend and pay their CEO’s over $1 million in total compensations. The following table describes this joint distribution.

	Dividend	Not Dividend	Total
Over $1 Million	673	205	878
Not over $1 million	580	244	824
Total	1253	449	1702

When testing the hypothesis (using the 5% level of significance) that the compensation of the CEO and whether the company pays a dividend are independent, if the p-value .003 what would you conclude concerning the null hypothesis?