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. Select one: a. 0.01 < P-value < 0.02 b. P-value = 0.40 c. P-value = 0.50 d. 0.20 < P-value < 0.40 e. 0.02 < P-value < 0.05

Answer 1

Please don't hesitate to give a "thumbs up" in case you're satisfied with the answer

I have performed the t-test with independent samples in Excel. Below are result.

The p-value is basically P(T<=t) two tail = .55286, as this is a 2 tailed-test

Hence, answer is e. P-value > .50