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Question: A USA Today editorial addressed the growth of compensation for corporate CEOs. As an example, quoting a study made by BusinessWeek, USA Today indicated that the pay packages for CEOs have increased almost sevenfold on average from 1994 to 2004. The file titled CEO Dough contains the salaries of CEOs in 1994 and in 2004, adjusted for inflation.
a. Use analysis of variance to determine if there is a difference in the CEOs' average salaries between 1994 and 2004, adjusted for inflation.
b. Determine if there is a difference in the CEOs' average salaries between 1994 and 2004 using the two-sample t-test procedure.
c. What is the relationship between the two test statistics and the critical values, respectively, that were used in parts a and b?
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