When testing the hypothesis (using the 1% level of significance) that the compensation of the CEO and whether the company pays a dividend are independent, what is the critical value?
When testing the hypothesis (using the 1% level of significance) that the compensation of the CEO and whether the company pays a dividend are independent, what is the critical value?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
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 1% level of significance) that the compensation of the CEO and whether the company pays a dividend are independent, what is the critical value? (please round your answer to 3 decimal places).
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