Question
In a sample of 1702 companies from year 2000, there are 878 companies that pay a stock dividend to its shareholders, there are 1253 companies
In a sample of 1702 companies from year 2000, there are 878 companies that pay a stock dividend to its shareholders, there are 1253 companies that pay their CEO's over $1 million in total compensation, and there are 673 firms that pay a dividend and pay their CEO's over $1 million in total compensations. The following table describes this joint distribution.
Dividend
Not Dividend
Total
Over $1 Million
673
205
878
Not over $1 million
580
244
824
Total
1253
449
1702
When testing the hypothesis (using the 1% level of significance) that the compensation of the CEO and whether the company pays a dividend are independent, what is the critical value? (please round your answer to 3 decimal places).
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Cornerstones of Financial and Managerial Accounting
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
2nd edition
978-1111879044
