Question

A shareholders' group, in lodging a protest, claimed that the mean tenure for a chief executive officer (CEO) was at least nine years. A survey of companies reported in The Wall Street Journal found a sample mean tenure of x = 7.07 years for CEOs with a standard deviation of s = 6.38 years.

(a)

Choose the correct hypotheses that can be used to challenge the validity of the claim made by the shareholders' group.

H0:	μ - Select your answer -=≥≤ years
Ha:	μ - Select your answer -=>< years

(b)

Assume that 85 companies were included in the sample. What is the p value for your hypothesis test? If required, round your answer to four decimal places.

(c)

At α = 0.01, what is your conclusion?

We - Select your answer -rejectfail to reject the null hypothesis. We - Select your answer -cancannot conclude that the mean tenure for a CEO is shorter than nine years.

Answer 1