A USA Today editorial (Alejandro Gonzalez, “CEO Dough”) addressed the growth of compensation for corporate CEOs. Part of the story quoted a study done for BusinessWeek, which indicated that the pay packages have increased almost sevenfold on average from 1994 to 2004. The file entitled CEODough contains the salaries of CEOs in 1994 and in 2004, adjusted for inflation. Assume the populations are normally distributed.

a. Determine if there is a difference in the standard deviations of the salaries of CEOs in 1994 and 2004. Use a significance level of 0.02.

b. Calculate the proportion of CEO salaries for 2004 that are larger than the average salaries for CEOs in 1994. Assume the sample statistics are sufficiently good approximations to the populations’ parameters.