Question

In this problem, assume that the distribution of differences is approximately normal. Note: For degrees of freedom d.f. not in the Student's t table, use the closest d.f. that is smaller. In some situations, this choice of d.f. may increase the P-value by a small amount and therefore produce a slightly more "conservative" answer. 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 a random sample of companies yielded the following data:

B: Percent increase for company 26,25,27, 18, 6, 4, 21, 37

A: Percent increase for CEO 25, 25, 22, 14, −4, 19, 15, 30

Level of significance is 5%

a) What is the value of the sample test statistic? (Round your answer to three decimal places.)

In this problem, assume that the distribution of differences is approximately normal. Note: For degrees of freedom d.f. not in the Student's t table, use the closest d.f. that is smaller. In some situations, this choice of d.f. may increase the P-value by a small amount and therefore produce a slightly more "conservative" answer.

At five weather stations on Trail Ridge Road in Rocky Mountain National Park, the peak wind gusts (in miles per hour) for January and April are recorded below.

Weather Station	1	2	3	4	5
January	139	120	128	64	78
April	108	115	102	88	61

Level of significance is 1%

b) What is the value of the sample test statistic? (Round your answer to three decimal places.)

Answer 1

T = 0.830

2)

t-Test: Paired Two Sample for Means
	January	April
Mean	105.8	94.8
Variance	1079.2	455.7
Observations	5	5
Pearson Correlation	0.751769876
Hypothesized Mean Difference	0
df	4
t Stat	1.122098525
P(T<=t) one-tail	0.162311474
t Critical one-tail	3.746947388
P(T<=t) two-tail	0.324622947
t Critical two-tail	4.604094871

TS = 1.122