It is desired to estimate the average total compensation of CEOs in the Service

Question

It is desired to estimate the average total compensation of CEOs in the Service
industry. Data were randomly collected from 18 CEOs and the 97% confidence interval
was calculated to be ($2,181,260, $5,836,180). Based on the interval above, do you
believe the average total compensation of CEOs in the Service industry is more than
$3,000,000?
- I am 97% confident of it.
- I am 78% confident of it.
- I am 97% confident that the average compensation is $3,000,000.
- I cannot conclude that the average exceeds $3,000,000 at the 97% confidence level.

Explanation / Answer

Given that,     It is desired to estimate the average total compensation of CEOs in the
   Service industry.
   Data were randomly collected from 18 CEOs and the 97% confidence
   interval was calculated to be ($2,181,260, $5,836,180).
    
   To believe the average total compensation of CEOs in the Service industry
   is more than $3,000,000

   I am 97% confident that the average compensation is $3,000,000.

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