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 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 company	28	16	25	26	18	20	7	10
A: Percent for CEO	23	14	23	18	23	10	4	14

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 5% level of significance. Find (or estimate) the P-value.

a. 0.01 < P-value < 0.02

b. 0.02 < P-value < 0.05

c. P-value = 0.50

d. P-value = 0.40

e. 0.20 < P-value < 0.40

Answer 1