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).Based on the interval above,do you believe the mean total compensation of CEOs in the Service industry is more than $3,000,000?
A)Yes,and I am 95% confident of it.
B)Yes,and I am 78% confident of it.
C)I am 95% confident that the mean compensation is $3,000,000.
D)I cannot conclude that the mean exceeds $3,000,000 at the 95% confidence level.

Question

Quizplus · Accepted Answer

The confidence interval calculated does not include $3,000,000, so we cannot conclude with 95% confidence that the true mean total compensation exceeds $3,000,000.

It Is Desired to Estimate the Mean Total Compensation of CEOs