Are America's Top Chief Executive Officers (CEOs) Really Worth All

question 7

Multiple Choice

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: $$\begin{array} { l | l l l l l l l l } \hline \text { B : Percent for company } & 13 & 10 & 29 & 14 & 13 & 21 & 11 & 14 \\\hline \text { A: Percent for CEO } & 17 & 7 & 34 & 4 & 3 & 21 & 10 & 15 \\\hline\end{array}$$ 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 1% level of significance. Are the data statistically significant at level $\alpha$ ? Will you reject or fail to reject the null hypothesis?

• A)Since the interval containing the P-values has values that are smaller than the level of significance, the data are not statistically significant and so we fail to reject the null hypothesis.
• B)Since the interval containing the P-values has values that are smaller than the level of significance, the data are statistically significant and so we reject the null hypothesis.
• C)Since the interval containing the P-values has values that are larger than the level of significance, the data are not statistically significant and so we fail to reject the null hypothesis.
• D)Since the interval containing the P-values has values that are larger than the level of significance, the data are statistically significant and so we fail to reject the null hypothesis.

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Definitions:

Anabolic Pathways

Metabolic pathways that construct molecules from smaller units, requiring energy, commonly associated with growth and development.

Genomic Imprinting

An epigenetic phenomenon by which certain genes are expressed in a parent-of-origin-specific manner, meaning that the expression of such genes is determined by the parent from whom the gene was inherited.

Paternal

Relating to or characteristic of a father, including genetic inheritance or social roles associated with fatherhood.

Maternal Inheritance

The genetic transmission of genes and traits exclusively from the mother, often seen in mitochondrial DNA.