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 9 years. A survey of 91
companies reported in The Wall Street Journal found a sample mean
tenure of 7.7 years for CEOs with a standard deviation of 4.5 years
(The Wall Street Journal, January 2, 2007).
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 0.001. Your hypotheses are:
What is the p-value for this sample?
(Report answer accurate to 4 decimal places.)
Population mean = = 9
Sample mean = = 7.7
Sample standard deviation = s = 4.5
Sample size = n = 91
Level of significance = = 0.001
This is a left (One) tailed test,
The null and alternative hypothesis is,
The test statistics,
t = ( - )/ (s/)
= ( 7.7 - 9 ) / ( 4.5 /91 )
P- Value = 0.0035
The p-value is p = 0.0035 > 0.001, it is concluded that the null hypothesis is fail to reject.
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