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. DividendNot DividendTotalOver $1 Million673205878Not over $1 million580244824Total12534491702 When testing the hypothesis (using the 1% level of significance) that the compensation of the CEO and whether the company pays a dividend are independent, what is the critical value? (please round your answer to 3 decimal places).

Answered: When testing the hypothesis (using the…

Holt Mcdougal Larson Pre-algebra: Student Edition 2012

1st Edition

ISBN:9780547587776

Author:HOLT MCDOUGAL

Publisher:HOLT MCDOUGAL

Chapter11: Data Analysis And Probability

Section11.4: Collecting Data

Problem 6E

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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 1% level of significance) that the compensation of the CEO and whether the company pays a dividend are independent, what is the critical value? (please round your answer to 3 decimal places).

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