Using techniques from an earlier section, we can find a confidence interval for ? d . Consider a random sample of n matched data pairs A , B . Let d = B − A be a random variable representing the...

Using techniques from an earlier section, we can find a confidence interval for ?
_d
. Consider a random sample ofn matched data pairsA,B. Letd =B −A be a random variable representing the difference between the values in a matched data pair. Compute the sample mean

of the differences and the sample standard deviations_d
. Ifd has a normal distribution or is mound-shaped, or ifn ≥ 30, then aconfidence interval for ?
_d
is as follows.

d − E <>_d <>

where

E = t_c

s_d

c = confidence level (0 c <>

t_c
= critical value for confidence levelc andd.f. =n − 1

B: Percent increase for company	16	24	28	18	6	4	21	37
A: Percent increase for CEO	22	14	18	14	−4	19	15	30

(a)

Using the data above, find a 95% confidence interval for the mean difference between percentage increase in company revenue and percentage increase in CEO salary. (Round your answers to two decimal places.)

lower limitupper limit

(b)

Use the confidence interval method of hypothesis testing to test the hypothesis that population mean percentage increase in company revenue is different from that of CEO salary. Use a 5% level of significance.

Since ?_d = 0 from the null hypothesis is in the 95% confidence interval, do not rejectH
₀ at the 5% level of significance. The data do not indicate a difference in population mean percentage increases between company revenue and CEO salaries.Since ?_d = 0 from the null hypothesis is not in the 95% confidence interval, rejectH
₀ at the 5% level of significance. The data indicate a difference in population mean percentage increases between company revenue and CEO salaries. Since ?_d = 0 from the null hypothesis is in the 95% confidence interval, rejectH
₀ at the 5% level of significance. The data do not indicate a difference in population mean percentage increases between company revenue and CEO salaries.Since ?_d = 0 from the null hypothesis is not in the 95% confidence interval, do not rejectH
₀ at the 5% level of significance. The data indicate a difference in population mean percentage increases between company revenue and CEO salaries.

Jun 09, 2022

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Using techniques from an earlier section, we can find a confidence interval for ? d . Consider a random sample of n matched data pairs A , B . Let d = B − A be a random variable representing the...

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