Are America\'s top chief executive officers (CEOs) really worth all that money?

Question

Are America's top chief executive officers (CEOs) really worth all that money? One way to answer this question is to look at row B, the annual company percentage increase in revenue, versus row A, the CEO's annual percentage salary increase in that same company. Suppose that a random sample of companies yielded the following data:

11

28

8

16

29

24

13

23

16

33

3

13

22

24

5

18

Do these data indicate that the population mean percentage increase in corporate revenue (row B) is different from the population mean percentage increase in CEO salary? Use a 10% level of significance. Find (or estimate) the P-value.

0.02 < P-value < 0.05

0.10 < P-value < 0.20

P-value = 0.10

0.20 < P-value < 0.40

0.40 < P-value < 0.50

B: Percent for company

11

28

8

16

29

24

13

23

A: Percent for CEO

16

33

3

13

22

24

5

18

Explanation / Answer

solution:

Perform ttest in R

COMPANY <- c(11,28,8,16,29,24,13,23)
CEO <- c(16,33,3,13,22,24,5,18)
t.test(COMPANY,CEO,conf.level = 0.9)

Output:data: COMPANY and CEO
t = 0.49879, df = 13.427, p-value = 0.626
alternative hypothesis: true difference in means is not equal to 0
90 percent confidence interval:
-5.719141 10.219141
sample estimates:
mean of x mean of y
19.00 16.75

p=0.626

FROM OPTION:

0.40 < P-value < 0.50

E.

0.40 < P-value < 0.50

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