In a sample of 1702 companies from year 2000, there are 1253 companies that pay a stock dividend to its shareholders, there are 878 companies that pay their CEO’s over $1 million in total compensation, and there are 673 firms that pay a dividend and pay their CEO’s over $1 million in total compensations. The following table describes this joint distribution. Dividend Not Dividend Total Over $1 Million 673 205 878 Not over $1 million 580 244 824 Total 1253 449 1702 When testing the hypothesis (using the 5% level of significance) that the compensation of the CEO and whether the company pays a dividend are independent, if the p-value .003 what would you conclude concerning the null hypothesis? reject the null hypothesis that the variables are independent fail to reject the null hypothesis that the variables are independent
In a sample of 1702 companies from year 2000, there are 1253 companies that pay a stock dividend to its shareholders, there are 878 companies that pay their CEO’s over $1 million in total compensation, and there are 673 firms that pay a dividend and pay their CEO’s over $1 million in total compensations. The following table describes this joint distribution.
|
|
Dividend
|
Not Dividend
|
Total
|
|
Over $1 Million
|
673
|
205
|
878
|
|
Not over $1 million
|
580
|
244
|
824
|
|
Total
|
1253
|
449
|
1702
|
When testing the hypothesis (using the 5% level of significance) that the compensation of the CEO and whether the company pays a dividend are independent, if the p-value .003 what would you conclude concerning the null hypothesis?
|
reject the null hypothesis that the variables are independent |
||
|
fail to reject the null hypothesis that the variables are independent |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
