Are Americas top chief executive officers CEOs really worth

Are America\'s top chief executive officers (CEOs) really worth all that money? One way to answer this question is to look at the annual company percentage increase in revenue versus the CEO\'s annual percentage salary increase in that same company. Suppose that a random sample of companies yielded the following data:

Do these data indicate that the population mean percentage increase in corporate revenue is greater than the population mean percentage increase in CEO salary? Use a 5% level of significance. What is the critical value that you would use to conduct this test of hypothesis? Place your answer, rounded to 3 decimal places, in the blank. For example, 2.345 would be a legitimate entry.

Solution

Answer: Descriptive Statistics
Column corporation

Sample Size, n: 8
Mean: 10.75
Median: 10
Midrange: 15
RMS: 13.27592
Variance, s^2: 69.35714
St Dev, s: 8.328094

Descriptive Statistics
Column CEO

Sample Size, n: 8
Mean: 8.875
Median: 6.5
Midrange: 14
RMS: 13.97766
Variance, s^2: 133.2679
St Dev, s: 11.54417

Ho : mu1 = mu2
Ha: mu1 > mu2 (Claim)

t = (10.75 - 8.875)/sqrt(69.357/8 + 133.2679/8) = 0.3726

Critical t: 1.773774

P-Value: 0.3578

Fail to Reject the Null Hypothesis
Sample does not provide enough evidence to support the claim