Explanation Calculation: Test statistic for t : The t statistic value for sample test statistic d ¯ is, t = d ¯ − μ d ( s d n ) In the formula d ¯ is sample test statistic, μ d is specified in H 0 , s σ is sample standard deviation of the differences d , and n is the number of data pairs. Let μ d denotes the population mean of the differences. From the given information the value of α is 0.05, and the population mean percentage increase in corporate revenue is different from the population mean percentage increase in CEO salary. The null and alternative hypothesis is, Null hypothesis: H 0 : μ d = 0 Alternative hypothesis: H 1 : μ d ≠ 0 T-statistic : Substitute d ¯ as 2.25, μ d as 0, s σ as 7.78, and n as 8 in the test statistic formula t = 2.25 − 0 ( 7.78 8 ) = 2

Bundle: Understandable Statistics: Concepts And Methods, 12th + Webassign, Single-term Printed Access Card

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ISBN: 9781337605199

Author: Charles Henry Brase, Corrinne Pellillo Brase

Publisher: Brooks Cole

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Chapter 8.4, Problem 23P

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Check whether the null hypothesis is rejecting or fail to reject by using the critical region method.

Compare the conclusion of critical value method with the P-value method.

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Chapter 8.4, Problem 22P

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Check whether the null hypothesis is rejecting or fail to reject by using the critical region method. Compare the conclusion of critical value method with the P -value method.

Solution Summary: The author compares the conclusion of critical value method with the P -value method. The null hypothesis is not rejected.

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Check whether the null hypothesis is rejecting or fail to reject by using the critical region method.

Compare the conclusion of critical value method with the P-value method.

Want to see the full answer?

Chapter 8 Solutions

Check whether the null hypothesis is rejecting or fail to reject by using the critical region method. Compare the conclusion of critical value method with the P -value method.

Solution Summary: The author compares the conclusion of critical value method with the P -value method. The null hypothesis is not rejected.

Concept explainers

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Check whether the null hypothesis is rejecting or fail to reject by using the critical region method. Compare the conclusion of critical value method with the P-value method.

Want to see the full answer?

Chapter 8 Solutions

Check whether the null hypothesis is rejecting or fail to reject by using the critical region method.

Compare the conclusion of critical value method with the P-value method.