Asked by Sandesh Uprety on Sep 29, 2024
It is desired to estimate the average total compensation of CEOs in the publishing industry.Data were randomly collected from 18 CEOs and 95% confidence interval was calculated to be ($2,190,000,$4,720,000) .Based on the interval above,do you believe the actual average total compensation of CEOs in the publishing industry could be $3,000,000?
A) Yes,and I am sure of that.
B) Yes,and I am 95% confident of that.
C) No,and I am sure of that.
D) No,and I am 95% confident of that.
CEOs
Chief Executive Officers, the highest-ranking executives in companies, responsible for making major corporate decisions, managing overall operations, and acting as the main point of communication between the board of directors and corporate operations.
Total Compensation
The complete reward package provided to an employee, including base salary, bonuses, benefits, and any other financial remunerations.
- Discern between valid and invalid interpretations of confidence intervals.
- Acquire knowledge about the importance and effects of a confidence level in relation to interval estimation.
Learning Objectives
- Discern between valid and invalid interpretations of confidence intervals.
- Acquire knowledge about the importance and effects of a confidence level in relation to interval estimation.