Question
A shareholders' group, in lodging a protest, claimed that the mean tenure for a chief executive office (CEO) was at least nine years. A survey of companies reported in The Wall Street Journal found a sample mean tenure of x = 7.27 years for CEOs with a standard deviation of s = 6.38 years.
(a)
Formulate hypotheses that can be used to challenge the validity of the claim made by the shareholders' group.
H0: μ = 9
Ha: μ ≠ 9
 
H0: μ < 9
Ha: μ ≥ 9
    
H0: μ ≥ 9
Ha: μ < 9
 
H0: μ ≤ 9
Ha: μ > 9
 
H0: μ > 9
Ha: μ ≤ 9
(b)
Assume 90 companies were included in the sample.
What is the test statistic? (Round your answer to three decimal places.)
(      )
What is the p-value for your hypothesis test? (Round your answer to four decimal places.)
p-value = 
 
(c) At  ? = 0.01,
 what is your conclusion?
Do not reject H0. We cannot conclude that the mean tenure of a CEO is significantly lower than 9 years. The claim of the shareholders group is valid.
Do not reject H0. We can conclude that the mean tenure of a CEO is significantly lower than 9 years. The claim of the shareholders group is not valid.    
Reject H0. We cannot conclude that the mean tenure of a CEO is significantly lower than 9 years. The claim of the shareholders group is valid.
Reject H0. We can conclude that the mean tenure of a CEO is significantly lower than 9 years. The claim of the shareholders group is not valid.

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Hypothesis Testing

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