In a sample of 1702 companies from year 2000, there are 2153 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, what is the test statistic? (please round your answer to 3 decimal places).
In a sample of 1702 companies from year 2000, there are 2153 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, what is the test statistic? (please round your answer to 3 decimal places).
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 6 images
