Every month, $60 is withdrawn from Tom's savings account to pay for his gym membership. He has enough savings to withdraw no mor
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Complete question is;
A shareholders’ group, in lodging a protest, claimed that the mean tenure for a chief executive office (CEO) was at least seven years. A survey of companies reported in The Wall Street Journal found a sample mean tenure of x¯ = 7.27 years for CEOs with a standard deviation of s = 6.38 years (The Wall Street Journal, January 2, 2007).
a. Formulate hypotheses that can be used to challenge the validity of the claim made by
the shareholders’ group.
b. Assume 85 companies were included in the sample. What is the p-value for your hypothesis
test?
Answer:
A) Null hypothesis: H0: μ ≥ 7
Alternative hypothesis: μ < 7
B) p-value = 0.3488
Step-by-step explanation:
A) We are told that the shareholders group claimed that the mean tenure for a chief executive office (CEO) was at least seven years.
Thus, defining the hypothesis, we have;
Null hypothesis: H0: μ ≥ 7
Alternative hypothesis: μ < 7
B) Sample mean: x¯ = 7.27 years standard deviation: s = 6.38 years
Sample size = 85
Formula for the test static is;
t = (x¯ - μ)/(s/√n)
t = (7.27 - 7)/(6.38/√85)
t = 0.39
From online p-value from t score calculator attached using: t = 0.39, DF= 85 - 1 = 84, significance value = 0.05, one tail, we have;
p-value = 0.3488
