Question
Using techniques from an earlier section, we can find a confidence interval for d . Consider a random sample of n matched data pairs A
Using techniques from an earlier section, we can find a confidence interval for d. Consider a random sample of n matched data pairs A, B. Let d = BA be a random variable representing the difference between the values in a matched data pair. Compute the sample mean dof the differences and the sample standard deviation sd. If d has a normal distribution or is mound-shaped, or if n 30, then a confidence interval for d is as follows. dE < d < d + E
where E = tc
sd | ||
|
c = confidence level (0 < c < 1)
tc = critical value for confidence level c and d.f. = n1
B: Percent increase for company | 10 | 30 | 30 | 18 | 6 | 4 | 21 | 37 |
A: Percent increase for CEO | 23 | 26 | 28 | 14 | 4 | 19 | 15 | 30 |
(a) Using the data above, find a 95% confidence interval for the mean difference between percentage increase in company revenue and percentage increase in CEO salary. (Round your answers to two decimal places.)
lower limit | |
upper limit |
(b) Use the confidence interval method of hypothesis testing to test the hypothesis that population mean percentage increase in company revenue is different from that of CEO salary. Use a 5% level of significance.
Since d = 0 from the null hypothesis is in the 95% confidence interval, reject H0 at the 5% level of significance. The data do not indicate a difference in population mean percentage increases between company revenue and CEO salaries. Since d = 0 from the null hypothesis is not in the 95% confidence interval, do not reject H0 at the 5% level of significance. The data indicate a difference in population mean percentage increases between company revenue and CEO salaries. Since d = 0 from the null hypothesis is in the 95% confidence interval, do not reject H0 at the 5% level of significance. The data do not indicate a difference in population mean percentage increases between company revenue and CEO salaries. Since d = 0 from the null hypothesis is not in the 95% confidence interval, reject H0 at the 5% level of significance. The data indicate a difference in population mean percentage increases between company revenue and CEO salaries.
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