Question

A shareholders' group is lodging a protest against your company. The shareholders group claimed that the mean tenure for a chief exective office (CEO) was at least 11 years. A survey of 63 companies reported in The Wall Street Journal found a sample mean tenure of 8.4 years for CEOs with a standard deviation of s=s= 5.5 years (The Wall Street Journal, January 2, 2007). You don't know the population standard deviation but can assume it is normally distributed.

You want to formulate and test a hypothesis that can be used to challenge the validity of the claim made by the group, at a significance level of α=0.001α=0.001. Your hypotheses are:

      Ho:μ≥11Ho:μ≥11
      Ha:μ<11Ha:μ<11

What is the test statistic for this sample?  
test statistic =  (Report answer accurate to 3 decimal places.)

What is the p-value for this sample?  
p-value =  (Report answer accurate to 4 decimal places.)

Answer 1

The Hypothesis:

H0: 11

Ha: < 11

The Test Statistic:

The p value:

The p value (left tail) for df = n - 1 = 62 is 0.0002