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

Question

It is desired to estimate the mean total compensation of CEOs in the Service industry. Data were randomly collected from 18 CEOs and the 95% confidence interval was calculated to be ($2, 181, 260, $5, 836, 180). Which of the following interpretations is correct? In the population of Service industry CEOs, 95% of them will have total compensations that fall in the interval $2, 181, 260 to $5, 836, 180. We are 95% confident that the mean total compensation of all CEOs in the Service industry falls in the interval $2, 181, 260 to $5, 836, 180. 95% of the sampled total compensation values fell between $2, 181, 260 and $5, 836, 180. We are 95% confident that the mean of the sampled CEOs falls in the interval $2, 181, 260 to $5, 836, 180. A major department store chain is interested in estimating the mean amount its credit card customers spent on their first visit to the chain's new store in the mall. Fifteen credit card accounts were randomly sampled and analyzed with the following results: X =$50.50 and S = 20. Construct a 95% confidence interval for the mean amount its credit card customers spent on their first visit to the chain's new store in the mall assuming that the amount spent follows a normal distribution. $50.50 plusminus $9.09 $50.50 plusminus $11.00 $50.50 plusminus $10.12 $50.50 plusminus $11.08 An economist is interested in studying the incomes of consumers in a particular country. The population standard deviation is known to be $1,000. What total sample size would the economist need to use for a 95% confidence interval if the margin of error is $50? n = 1537 n = 40 n = 20 n = 385

Explanation / Answer

3) option B is correct

4)here std error =std deviation/(n)1/2 =5.164

and for 14 degree of freedom and 95% CI, t=2.145

hence confidence interval =mean +/- t*std error =50.5+/- 11.08

option D

5)for 95% CI, z=1.96

E=50

n=(z*std deviation/E)2 =1537

option A

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