In this problem, assume that the distribution of differences is approximately normal. Note: For degrees of freedom \( df \), not in the Student’s t table, use the closest \( df \) that is smaller. In some situations, this choice of \( df \) 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 | 24 | 25 | 25 | 18 | 6 | 4 | 21 | 37 ||----------|---------------------------------|----|----|----|----|---|---|----|----|| A: Percent increase for CEO | 23 | 22 | 23 | −14 | 9 | 19 | 15 | 30 |---**Do these data indicate that the population mean percentage increase in corporate revenue (row B) is different from the population mean percentage increase in CEO salary? Use a 5% level of significance. (Let \( d = B - A \).)**(a) **What is the level of significance?**State the null and alternate hypotheses.- \( H_0 \): \( \mu_d = 0 \); \( \mu_d \geq 0 \)- \( H_a \): \( \mu_d \neq 0 \); \( \mu_d < 0 \)- \( H_0 \): \( \mu_d = 0 \); \( \mu_d < 0 \)- \( H_a \): \( \mu_d > 0 \); \( \mu_d \neq 0 \)- \( H_0 \): \( \mu_d = 0 \); \( \mu_d > 0 \)- \( H_a \): \( \mu_d \neq 0 \); \( \mu_d < 0 \)(b) **What sampling distribution will you use? What assumptions are you making?**- The standard normal. We assume that \( d \) has an approximately uniform distribution.- The standard normal. We assume that \( d \) has an approximately normal

Introduction: Denote μd as the true mean difference in the percentage increase in corporate revenue…

In this problem, assume that the distribution of differences is approximately normal. Note: For degrees of freedom d.s. not in the Student's t table, use the closest d.r. that is smaler. In some situations, this choice of d.r. may increase the Pvalue 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 24 25 25 18 6 4 21 for company A: Percent increase for CEO 23 23 22 14-4 19 15 30 A USE SALT Do these data indicate that the population mean percentage increase in corporate revenue (row B) is different from the population mean percentage increase in CEO salary? Use a 5% level of significance. (Let d-B- A.) (a) What is the level of significance? O State the null and aitemate hypotheses (b) What samoling distribution will you use? What assumptions are you making? O The standard nomal. We assume that d has an approximately uniform distribution. O The standard normal. We assume that d has an approximately normal distribution. O The Student's t. We assume that d has an approximately uniform distribution. O The Student's t. We assume that d has an approximately normal distribution. What is the value of the sample test statistic? (Round your answer to three decimal places.) (c) Find (or estimate) the Pvalue O Pevalue > 0.500 . O 0.250 a, we reject H The data are not statistically significant. O Since the Pvalue sa, we fail to reject H The data are statistically significant. O Since the Pvalue sa, we reject H The data are statistically significant. O Since the Pvalue>. we fail to reject .. The data are not statistically significant. (e) Interpret your conclusion in the context of the application. O Reject H At the 5% level of significance, the evidence is sufficient to claim a difference in population mean percentage increases for corporate revenue and CEO salary. O Fail to reject H At the 5% level of significance, the evidence is insufficient to claim a dirference in population mean percentage incareases for corporate revenue and CEO salary. O Reject Hg. At the 5% level of significance, the evidence is insuficient to claim a difference in population mean percentage increases for corporate revenue and CEO salary. O Fall to reject H At the 5% level of significance, the evidence is sufficient to daim a difference in population mean percentage increases for corporate revenue and CEO salary.