Using techniques from an earlier section, we can find a confidence interval for Ha Consider a random sample of n matched data pairs A, B. Let d- B - A be a random variable representing the difference between the values in a matched data pair. Compute the sample mean a of the differences and the sample standard deviation s, If d has a normal distribution or is mound-shaped, or if n 2 30, then a confidence interval for Hg is as follows. a - E < Hg < d+ E where E-t C- confidence level (0 < c < 1) t- critical value for confidence level c and d.f. -n - 1 B: Percent increase for company A: Percent increase for CEO 18 6 6 18 6. 4 21 37 30 21 29 14 -4 19 15 30 (a) Using the data above, find a 95% confidence interval for the mean difference between percentage increase in company revenue and percentage increase in CEO salary. (Round your answers to two decimal places.) lower limit upper limit (b) Use the confidence interval method of hypothesis testing to test the hypothesis that population mean percentage increase in company revenue is different from that of CEO salary. Use a 5% level of significance. O Since u,-0 from the null hypothesis is not in the 95% confidence interval, do not reject H, at the 5% level of significance. The data indicate a difference in population mean percentage increases between company revenue and CEO salaries. O Since Ha -0 from the null hypothesis is in the 95% confidence interval, reject H, at the 5% level of significance. The data do not indicate a difference in population mean percentage increases between company revenue and CEO salaries. O Since u,- 0 from the null hypothesis is in the 95% confidence interval, do not reject H, at the 5% level of significance. The data do not indicate a difference in population mean percentage increases between company revenue and CEO salaries. O Since O from the null hypothesis is not in the 95% confidence interval, reject H, at the 5% level of significance. The data indicate a difference in population mean percentage increases between company revenue and CEO salaries.

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Using techniques from an earlier section, we can find a confidence interval for Hg. Consider a random sample of n matched data pairs A, B. Let d = B - A be a random variable
representing the difference between the values in a matched data pair. Compute the sample mean d of the differences and the sample standard deviation s, If d has a normal distribution
or is mound-shaped, or if n 2 30, then a confidence interval for u, is as follows.
3+p > "rt > 3 -2
where E = t
C- confidence level (0 <c < 1)
t- critical value for confidence level c and d.f. = n - 1
B: Percent increase
for company
A: Percent increase
for CEO
18
6.
18
6.
21
37
30
21
29
14
-4
19
15
30
(a) Using the data above, find a 95% confidence interval for the mean difference between percentage increase in company revenue and percentage increase in CEO salary. (Round
your answers to two decimal places.)
lower limit
upper limit
(b) Use the confidence interval method of hypothesis testing to test the hypothesis that population mean percentage increase in company revenue is different from that of CEO
salary. Use a 5% level of significance.
O Since u, = 0 from the null hypothesis is not in the 95% confidence interval, do not reject H, at the 5% level of significance. The data indicate a difference in population
mean percentage increases between company revenue and CEO salaries.
O Since
= O from the null hypothesis is in the 95% confidence interval, reject H, at the 5% level of significance. The data do not indicate a difference in population mean
percentage increases between company revenue and CEO salaries.
O Since u,= O from the null hypothesis is in the 95% confidence interval, do not reject H, at the 5% level of significance. The data do not indicate a difference in population
mean percentage increases between company revenue and CEO salaries.
O Since u,= O from the null hypothesis is not in the 95% confidence interval, reject H, at the 5% level of significance. The data indicate a difference in population mean
percentage increases between company revenue and CEO salaries.
Transcribed Image Text:Using techniques from an earlier section, we can find a confidence interval for Hg. Consider a random sample of n matched data pairs A, B. Let d = B - A be a random variable representing the difference between the values in a matched data pair. Compute the sample mean d of the differences and the sample standard deviation s, If d has a normal distribution or is mound-shaped, or if n 2 30, then a confidence interval for u, is as follows. 3+p > "rt > 3 -2 where E = t C- confidence level (0 <c < 1) t- critical value for confidence level c and d.f. = n - 1 B: Percent increase for company A: Percent increase for CEO 18 6. 18 6. 21 37 30 21 29 14 -4 19 15 30 (a) Using the data above, find a 95% confidence interval for the mean difference between percentage increase in company revenue and percentage increase in CEO salary. (Round your answers to two decimal places.) lower limit upper limit (b) Use the confidence interval method of hypothesis testing to test the hypothesis that population mean percentage increase in company revenue is different from that of CEO salary. Use a 5% level of significance. O Since u, = 0 from the null hypothesis is not in the 95% confidence interval, do not reject H, at the 5% level of significance. The data indicate a difference in population mean percentage increases between company revenue and CEO salaries. O Since = O from the null hypothesis is in the 95% confidence interval, reject H, at the 5% level of significance. The data do not indicate a difference in population mean percentage increases between company revenue and CEO salaries. O Since u,= O from the null hypothesis is in the 95% confidence interval, do not reject H, at the 5% level of significance. The data do not indicate a difference in population mean percentage increases between company revenue and CEO salaries. O Since u,= O from the null hypothesis is not in the 95% confidence interval, reject H, at the 5% level of significance. The data indicate a difference in population mean percentage increases between company revenue and CEO salaries.
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