Chapter 6, Problem 32P

A shareholders’ group, in lodging a protest, claimed that the mean tenure for a chief executive officer (CEO) was at least nine years. A survey of companies reported in The Wall Street Journal found a sample mean tenure of $\bar{x}=7.27$ years for CEOs with a standard deviation of s = 6.38 years.

1. a. Formulate hypotheses that can be used to challenge the validity of the claim made by the shareholders’ group.
2. b. Assume that 85 companies were included in the sample. What is the p value for your hypothesis test?
3. c. At α = 0.01, what is your conclusion?