A marketing research company is estimating the average total compensation of CEO

Question

A marketing research company is estimating the average total compensation of CEOs in the service industry. Data were randomly collected from 18 CEOs and the 90% confidence interval for the mean was calculated to be ($2,181,260, $5, $836, 180). Explain what the phrase "90%" confident means.

a). 90% of the similarly constructed intervals would contain the value of the sample mean

b). 90% of the population values will fall within the interval

c). In repeated sampling, 90% of the intervals constructed would contain the sample mean

d). 90% of the sample means from similar samples fall within the interval

Explanation / Answer

b). 90% of the population values will fall within the interval

90% is the confidence that we are sure that the population values fall between the limits of the interval

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