It is desired to estimate the average total compensation of CEOs in the publishing industry.Data were randomly collected from 18 CEOs and 95% confidence interval was calculated to be ($2,190,000,$4,720,000).Based on the interval above,do you believe the actual average total compensation of CEOs in the publishing industry could be $3,000,000?
A)Yes,and I am sure of that.
B)Yes,and I am 95% confident of that.
C)No,and I am sure of that.
D)No,and I am 95% confident of that.

Question

Quizplus · Accepted Answer

The 95% confidence interval indicates that we are 95% confident that the true average total compensation of CEOs in the publishing industry falls between $2,190,000 and $4,720,000. Since $3,000,000 falls within this interval, we can say that we are 95% confident that the actual average total compensation could be $3,000,000. However, we cannot be sure of this with absolute certainty.

It Is Desired to Estimate the Average Total Compensation of CEOs