A shareholders\' group is lodging a protest against your company. The shareholde

Question

A shareholders' group is lodging a protest against your company. The shareholders group claimed that the mean tenure for a chief executive office (CEO) was at least 8 years. A survey of 69 companies reported in The Wall Street Journal found a sample mean tenure of 7.6 years for CEOs with a standard deviation of s= 4.6 years (The Wall Street Journal, January 2, 2007). You don't know the population standard deviation but can assume it is normally distributed.

You want to formulate and test a hypothesis that can be used to challenge the validity of the claim made by the group, at a significance level of =0.02. Your hypotheses are:

      Ho:8
      Ha:<8

What is the p-value for this sample?  
p-value =  (Report answer accurate to 4 decimal places.)

The p-value is...

less than (or equal to)

greater than

This p-value leads to a decision to...

reject the null

accept the null

fail to reject the null

As such, the final conclusion is that...

There is sufficient evidence to warrant rejection of the claim that the population mean is less than 8.

There is not sufficient evidence to warrant rejection of the claim that the population mean is less than 8.

The sample data support the claim that the population mean is less than 8.

There is not sufficient sample evidence to support the claim that the population mean is less than 8.

Explanation / Answer

std error of mean =std deviation/(n)1/2 =4.6/(69)1/2 =0.5538

therefore test stat t=(X-mean)/std error =(7.6-8)/0.5538=-0.7223

for above p value =0.2363

The p-value is greater than

This p-value leads to a decision to fail to reject the null

There is not sufficient evidence to warrant rejection of the claim that the population mean is less than 8.

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