Question

A shareholders' group, in lodging a protest, claimed that the mean tenure for a chief executive office (CEO) was at least nine 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. (a) Formulate hypotheses that can be used to challenge the validity of the claim made by the shareholders' group. H0: μ < 9 Ha: μ ≥ 9 H0: μ ≥ 9 Ha: μ < 9 H0: μ > 9 Ha: μ ≤ 9 H0: μ ≤ 9 Ha: μ > 9 H0: μ = 9 Ha: μ ≠ 9 (b) Assume 80 companies were included in the sample. What is the test statistic? (Round your answer to three decimal places.) What is the p-value for your hypothesis test? (Round your answer to four decimal places.) p-value = (c) At α = 0.01, what is your conclusion? Do not reject H0. We cannot conclude that the mean tenure of a CEO is significantly lower than 9 years. The claim of the shareholders group is valid. Reject H0. We can conclude that the mean tenure of a CEO is significantly lower than 9 years. The claim of the shareholders group is not valid. Do not reject H0. We can conclude that the mean tenure of a CEO is significantly lower than 9 years. The claim of the shareholders group is not valid. Reject H0. We cannot conclude that the mean tenure of a CEO is significantly lower than 9 years. The claim of the shareholders group is valid.

Answer 1