In this problem, assume that the distribution of differences isapproximately normal. Note: For degrees of freedomd.f. not in the Student's t table, usethe closest d.f. that is smaller. Insome situations, this choice of d.f. may increasethe P-value by a small amount and therefore produce aslightly more \"conservative\" answer.
Are America's top chief executive officers (CEOs) really worth allthat 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 a random sample of companies yieldedthe following data:
B: Percent increase
for company | 26 | 25 | 27 | 18 | 6 | 4 | 21 | 37 |
A: Percentincrease
for CEO | 21 | 23 | 22 | 14 | −4 | 19 | 15 | 30 |
Do these data indicate that the population mean percentageincrease in corporate revenue (row B) is different fromthe population mean percentage increase in CEO salary? Use a 5%level of significance. (Let d = B −A.)
What is the value of the sample test statistic? (Round youranswer to three decimal places.)
In this problem, assume that the distribution of differences isapproximately normal. Note: For degrees of freedomd.f. not in the Student's t table, usethe closest d.f. that is smaller. Insome situations, this choice of d.f. may increasethe P-value by a small amount and therefore produce aslightly more \"conservative\" answer.
Is fishing better from a boat or from the shore? Pyramid Lake islocated on the Paiute Indian Reservation in Nevada. Presidents,movie stars, and people who just want to catch fish go to PyramidLake for really large cutthroat trout. Let row B representhours per fish caught fishing from the shore, and let rowA represent hours per fish caught using a boat. Thefollowing data are paired by month from October through April.
| Oct | Nov | Dec | Jan | Feb | March | April |
| B: Shore | 1.4 | 1.8 | 2.0 | 3.2 | 3.9 | 3.6 | 3.3 |
| A: Boat | 1.3 | 1.3 | 1.6 | 2.2 | 3.3 | 3.0 | 3.8 |
Use a 1% level of significance to test if there is a differencein the population mean hours per fish caught using a boat comparedwith fishing from the shore. (Let d = B −A.)
What is the value of the sample test statistic? (Round youranswer to three decimal places.)
