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Question : Total 2005 CEO compensation (in $ millions) for


Total 2005 CEO compensation (in $ millions) for the largest U.S. companies by revenue is reported in the following frequency distribution. Total compensation includes salary, bonuses, stock and incentives, the potential value of stock options, and gains from stock options exercised.

Total Compensation ………………………………………………………………. Frequency
Less than 5 ………………………………………………………………………………………... 43
5 up to 10 …………………………………………………………………………………………... 65
10 up to 15 …………………………………………………………………………………………. 32
15 up to 20 …………………………………………………………………………………………. 38
20 or more …………………………………………………………………………………………. 60
n = 238

Other summary statistics for CEO compensation are as follows:




Total 2005 CEO compensation (in $ millions) for the largest -1


Conduct a goodness-of-fit test for normality of CEO compensation at the 1% significance level. Does total compensation of CEOs for the largest U.S. companies not follow the normal distribution? Conduct the Jarque-Bera test at the 1% significance level. Does total compensation of CEOs for the largest U.S. companies not follow the normal distribution?