In this problem, assume that the distribution of differences is approximately normal. Note: For degrees of freedom d.f. not in the Student's t table, use the closest d.f. that is smaller. In some situations, this choice of d.f. may increase the P-value by a small amount and therefore produce a slightly more "conservative" answer.Are America's top chief executive officers (CEOs) really worth all that money? One way to answer this question is to look at row B, the annual company percentage increase in revenue, versus row A, the CEO's annual percentage salary increase in that same company. Suppose a random sample of companies yielded the following data: I need help with findingWhat is the value of the sample test statistic? (Round your answer to three decimal places.) B: Percent increasefor company2421271842137A: Percent increasefor CEO21232214-4191530Do these data indicate that the population mean percentage increase in corporate revenue (row B) is different from the population mean percentage increase in CEO salary? Use a 5% level of significance. (Let d = B - A.)(a) What is the level of significance?State the null and alternate hypotheses.O Ho: Hd > 0; H: Hd = 0O Ho: Hd = 0; H: H# 0Ho: Hg+ 0; H1: µd = 0O Ho: Hd = 0; H1: Hd>0O Ho: Hd = 0; H: Hd < 0(b) What sampling distribution will you use? What assumptions are you making?O The Student's t. We assume that d has an approximately normal distribution.O The Student's t. We assume that d has an approximately uniform distribution.O The standard normal. We assume that d has an approximately normal distribution.O The standard normal. We assume that d has an approximately uniform distribution.What is the value of the sample test statistic? (Round your answer to three decimal places.)(c) Find (or estimate) the P-value.O P-value > 0.500O 0.250 < p-value < 0.500O 0.100 < p-value < 0.250O 0.050 < P-value < 0.100O 0.010 < P-value < 0.050O p-value < 0.010 Sketch the sampling distribution and show the area corresponding to the P-value.bda-24@ 0-42-4-2-424(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level a?O Since the P-value s a, we reject Ho. The data are statistically significant.O Since the P-value > a, we reject Hn. The data are not statistically significant.O Since the P-value > a, we fail to reject Hn. The data are not statistically significant.O Since the P-value

Name: In this problem, assume that the distribution of differences is approx
Uploaded: 2024-03-20T07:06:16.000Z
Channel: Bartleby
Description: In this problem, assume that the distribution of differences is approximately normal. Note: For degrees of freedom d.f. not in the Student's t table, use the closest d.f. that is smaller. In some situations, this choice of d.f. may increase the P-val

Since you have posted a question with multiple subparts, we will solve the first three complete…

Answered: In this problem, assume that the…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

In this problem, assume that the distribution of differences is approximately normal. Note: For degrees of freedom d.f. not in the Student's t table, use the closest d.f. that is smaller. In some situations, this choice of d.f. may increase the P-value by a small amount and therefore produce a slightly more "conservative" answer.

Are America's top chief executive officers (CEOs) really worth all that money? One way to answer this question is to look at row B, the annual company percentage increase in revenue, versus row A, the CEO's annual percentage salary increase in that same company. Suppose a random sample of companies yielded the following data:

I need help with finding

What is the value of the sample test statistic? (Round your answer to three decimal places.)

B: Percent increase
for company
24
21
27
18
4
21
37
A: Percent increase
for CEO
21
23
22
14
-4
19
15
30
Do these data indicate that the population mean percentage increase in corporate revenue (row B) is different from the population mean percentage increase in CEO salary? Use a 5% level of significance. (Let d = B - A.)
(a) What is the level of significance?
State the null and alternate hypotheses.
O Ho: Hd > 0; H: Hd = 0
O Ho: Hd = 0; H: H# 0
Ho: Hg+ 0; H1: µd = 0
O Ho: Hd = 0; H1: Hd>0
O Ho: Hd = 0; H: Hd < 0
(b) What sampling distribution will you use? What assumptions are you making?
O The Student's t. We assume that d has an approximately normal distribution.
O The Student's t. We assume that d has an approximately uniform distribution.
O The standard normal. We assume that d has an approximately normal distribution.
O The standard normal. We assume that d has an approximately uniform distribution.
What is the value of the sample test statistic? (Round your answer to three decimal places.)
(c) Find (or estimate) the P-value.
O P-value > 0.500
O 0.250 < p-value < 0.500
O 0.100 < p-value < 0.250
O 0.050 < P-value < 0.100
O 0.010 < P-value < 0.050
O p-value < 0.010

Sketch the sampling distribution and show the area corresponding to the P-value.
b
d
a
-2
4
@ 0-4
2
-4
-2
-4
2
4
(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level a?
O Since the P-value s a, we reject Ho. The data are statistically significant.
O Since the P-value > a, we reject Hn. The data are not statistically significant.
O Since the P-value > a, we fail to reject Hn. The data are not statistically significant.
O Since the P-value <a, we fail to reject Hn. The data are statistically significant.
(e) Interpret your conclusion in the context of the application.
O Fail to reject Ho. At the 5% level of significance, the evidence is insufficient to claim a difference in population mean percentage increases for corporate revenue and CEO salary.
O Fail to reject Ho. At the 5% level of significance, the evidence is sufficient to claim a difference in population mean percentage increases for corporate revenue and CEO salary.
O Reject Ho. At the 5% level of significance, the evidence is insufficient to claim a difference in population mean percentage increases for corporate revenue and CEO salary.
O Reject Ho. At the 5% level of significance, the evidence is sufficient to claim a difference in population mean percentage increases for corporate revenue and CEO salary.

Expert Solution

Step by step

Solved in 4 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

$Centre, Spread, and Shape of a Distribution$

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.

Similar questions