Although the Distribution of Compensation Was Highly Skewed, in 2007

question 42

Multiple Choice

Although the distribution of compensation was highly skewed, in 2007, Goldman Sachs' employee compensation amounted to

• A)$500,000 per employee.
• B)$250,000 per employee.
• C)$600,000 per employee.
• D)$400,000 per employee.

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Definitions:

Statistically Significant

A determination that the observed effects or differences in data are unlikely to have occurred by chance, according to a pre-determined threshold.

Null Hypothesis

A statement in statistical analysis that proposes there is no significant difference or relationship between specified populations, or no effect of a treatment.

Region of Rejection

The range of values in a statistical test that leads to the rejection of the null hypothesis, indicating a statistically significant result.

Statistic

A single measure, reported as a number, used to summarize a set of data.