Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 12 Oct 2017 My Price 6.00

chief executive officers

6.125   CEO pay. A study of the pay of corporate chief executive officers (CEOs) examined the increase in cash compensation of the CEOs of 104 companies, adjusted for inflation, in a recent year. The mean increase in real compensation was x  =   6.9%,  and the standard deviation of the increases was

s = 55%. Is this good evidence that the mean real compensation μ of all CEOs increased that year? The hypotheses are

H0: μ = 0  (no increase)

Ha: μ> 0   (an increase)

Because the sample size is large, the sample s is close to the population σ , so take σ = 55%.

(a)   Sketch the Normal curve for the sampling distribution of x when H0  is true. Shade  the area that represents the P-value for the observed outcome x = 6.9%.

(b)   Calculate the P-value.

(c)   Is the result significant at the α = 0.05 level? Do you think the study gives strong evidence that the mean compensation of all CEOs went up?

 

Answers

Maurice Tutor
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Status NEW Posted 12 Oct 2017 08:10 PM My Price 6.00

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