A shareholders' group is lodging a protest against your company. The shareholders group claimed that the mean tenure for a chief exective office (CEO) was less than 8 years. A survey of 109 companies reported in The Wall Street Journal found a sample mean tenure of 6.6 years for CEOs with a standard deviation of 4.7 years (The Wall Street Journal, January 2, 2007).

You want to formulate and test a hypothesis that can be used to challenge the validity of the claim made by the group, at a significance level of 0.005. Your hypotheses are:

H0:8

H1:<8

What is the test statistic for this sample?

(Report answer accurate to 3 decimal places.)

What is the p-value for this sample?

(Report answer accurate to 4 decimal places.)

This test statistic leads to a decision to

• reject the null
• accept the null
• fail to reject the null

As such, the final conclusion is that

• there is sufficient evidence to conclude that the population mean tenure for CEOs is equal to 8.
• there is not sufficient evidence to conclude that the population mean tenure for CEOs is equal to 8.
• there is sufficient evidence to conclude that the population mean tenure for CEOs is less than 8.
• there is not sufficient evidence to conclude that the population mean tenure for CEOs is less than 8.