1. Are America\'s top chief executive officers (CEOs) really worth all that mone
ID: 3295959 • Letter: 1
Question
1.Are America's top chief executive officers (CEOs) really worth all that money? One way to answer this question is to look at row B, the annual company percentage increase in revenue, versus row A, the CEO's annual percentage salary increase in that same company. Suppose that a random sample of companies yielded the following data:
B: Percent for company
28
16
25
26
18
20
7
10
A: Percent for CEO
23
14
23
18
23
10
4
14
Do these data indicate that the population mean percentage increase in corporate revenue (row B) is different from the population mean percentage increase in CEO salary? Use a 5% level of significance. Find (or estimate) the P-value.
B: Percent for company
28
16
25
26
18
20
7
10
A: Percent for CEO
23
14
23
18
23
10
4
14
Explanation / Answer
Here P value is 0.4822 which is greater than 0.05, which means there is not suffcient evidence that population mean percentage increase in corporate revenue (row B) is different from the population mean percentage increase in CEO salary
t-Test: Two-Sample Assuming Equal Variances Variable 1 Variable 2 Mean 18.75 16.125 Variance 57.35714286 48.41071429 Observations 8 8 Pooled Variance 52.88392857 Hypothesized Mean Difference 0 df 14 t Stat 0.721933921 P(T<=t) one-tail 0.241109973 t Critical one-tail 1.761310136 P(T<=t) two-tail 0.482219946 t Critical two-tail 2.144786688Related Questions
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