Question
Are 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
Are 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. Suppose that a random sample of companies yielded the following data:
B: Percent for company5
8
13
16
14
20
4
13
A: Percent for CEO2
-1
3
14
19
17
3
9
Do 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 1% level of significance. Are the data statistically significant at level? Will you reject or fail to reject the null hypothesis?
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