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 at least 8 years. A survey of 123
companies reported in The Wall Street Journal found a sample mean
tenure of 6.9 years for CEOs with a standard deviation of s=s= 4.9
years (The Wall Street Journal, January 2, 2007). You don't know
the population standard deviation but can assume it is normally
distributed.
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 α=0.01α=0.01. Your hypotheses are:
Ho:μ≥8Ho:μ≥8
H1:μ<8H1:μ<8
What is the test statistic for this sample?
test statistic = (Report answer accurate to 3 decimal
places.)
What is the p-value for this sample?
p-value = (Report answer accurate to 4 decimal
places.)
The p-value is...
This test statistic leads to a decision to...
As such, the final conclusion is that...
To Test :-
Ho:μ≥8
H1:μ<8
Test Statistic :-
t = -2.4897
Test Criteria :-
Reject null hypothesis if
Result :- Reject null hypothesis
Decision based on P value
P - value = P ( t > 2.4897 ) = 0.0071
Reject null hypothesis if P value < level
of significance
P - value = 0.0071 < 0.01 ,hence we reject null hypothesis
Conclusion :- Reject null hypothesis
There is not sufficient evidence to warrant rejection of the claim that the population mean is less than 8.
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