Are America's top chief executive officers (CEOs) really worthall that money? One way to answer this question is to look at rowB, the annual company percentage increase in revenue,versus row A, the CEO's annual percentage salary increasein that same company. Suppose that a random sample of companiesyielded the following data:
B: Percent increase for company | 21 | 10 | 15 | 23 | 15 | 29 | 20 | 30 |
A: Percent increase for CEO | 17 | 1 | 11 | 28 | 16 | 34 | 12 | 22 |
?
Do these data indicate that the population mean percentageincrease in corporate revenue (row B) is different fromthe population mean percentage increase in CEO salary? Assume thatthe distribution of differences is approximately normal,mound-shaped and symmetric. Use a 5% level of significance. What isthe alternate hypothesis?
?
