In Exercise 5.18

(p. 276), the average 5-year revenue growth for the 500 fastest growing technology companies in 1999 (i.e., Forbes' Technology Fast 500) was investigated. The data are reproduced in the table below.

1994-1999 Revenue Rank Company Growth Rate (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4 Netscape Communication 64,240 22 Primary Network 10,789 89 WebTrends 3,378 160 CTX 1,864 193 ARIS 1,543 268 lomega 1,098 274 Medarex 1,075 322 World Access 895 359 Force 3 808 396 Theragenics 704 441 Ascent Solutions 630 485 3 Com 555 Source: Forha ASAE: Nov. 29,1999, pp. 97-111.

a. Recall that in Exercise 5.18a, the t-distribution was employed to make an inference about the true mean 5-year revenue growth rate for the 1999 Technology Fast 500. Explan why the resulting inference may be invalid.

b. Give the null and alternative hypotheses for a nonparametric test de~~gned to determine if the

"average" 5-year revenue growth rate is less than 5,000 percent.

c. Conduct the test of part b using a = .05. Interpret your result in the context of the problem.