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Posted: January 14th, 2023
6. 8.4 Hypothesis Test: Paired Differences
6. 8.4 Hypothesis Test: Paired DifferencesAre 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. A random sample of companies such as John Deere & Co., General Electric, Union Carbide, and Dow Chemical yielded the following data.B: Percent increase for company8101818642137A: Percent increase for CEO24192614?4191530Do 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 10% level of significance. Solve the problem using both the critical region method and the P-value method. (Round the test statistic and critical value to three decimal places. Round the P-value to four decimal places.)test statisticcritical valueP-valueConclusion: Select the correct answer: --Select--ABCDItem 4A.Fail to reject the null hypothesis. There is insufficient evidence to claim a difference in population mean percentage increases for corporate revenue and CEO salary.B.Fail to reject the null hypothesis. There is sufficient evidence to claim a difference in population mean percentage increases for corporate revenue and CEO salary.C.Reject the null hypothesis. There is insufficient evidence to claim a difference in population mean percentage increases for corporate revenue and CEO salary.D.Reject the null hypothesis. There is sufficient evidence to claim a difference in population mean percentage increases for corporate revenue and CEO salary.Compare the critical region method conclusion with the one obtained by using the P-value method. Are they the same?Select the correct answer: --Select--ABCItem 5A.The conclusions obtained by using both methods are the same.B.We reject the null hypothesis using the critical region method, but fail to reject using the P-value method.C.We reject the null hypothesis using theP-value method, but fail to reject using the critical region method.
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