T Course: ECON1203-BusinesTake a Test-Jannu Wen Week 8,2018s2 pd |https:/ .. A E
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T Course: ECON1203-BusinesTake a Test-Jannu Wen Week 8,2018s2 pd |https:/ .. A ECON1203-Business & Economic Statistics-$2/2018 Junru Wen 1 9/21/18 2:01 PM Quiz: Week 9 Fortnightly Quiz Time Remaining: 00.5931 Submit Quiz Neet Question This Question: 1 pt 2 of 10(0 complete) This Quiz: 10 pts possible A sample of 20 CEOs shows total annual compensations ranging from a minimum of $o.1 to $6361 mlion. The average for tese 20 CEOs $24 499 milion. n millions The histogram and ba plot are shown above. Based on thesedata, acomputer program found that a 95% confidence interval for the mean annual compensation of alCE trust this confidence interval? sis 12.72 61.72 SM. why should you be hesiant to Choose the correct answer below, A. The assumptons and oondbons for tintervol are not met The distrbuton is bimodal. OB. The assumptons and condsons for at-inerva.not met The distrbuton has a large outler that is puag the mean higher. O C. The assumptions and conditions for a t-inserval are not met The distribution is too skewed for a sample size of only 20 O D. The assumptions and conditions for a t-inberval are met. The confidence interval is satisfactory Click to select your answerExplanation / Answer
Correct Option C.
While constructing a t interval we should keep in mind that there should not be too skewed data. If it is too skewed then t interval constructed will not be that conclusive. This is because since a highly skewed will tend to pull the mean higher,hence it will effect highly the t interval that will be constructed. As it is evident from the histogram as well as the boxplot which is highly skewed hence we are hesitant to trust the confidence interval.
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