44. CEO compensation. The average total annual compensation for CEOs of the 800 largest U.S. companies (in $1000)

is 10,307.31 and the standard deviation is 17964.62. Here is a histogram of their annual compensations (in $1000):

a) Describe the histogram of Total Compensation. A research organization simulated sample means by drawing samples of 30, 50, 100, and 200, with replacement, from the 800 CEOs. The histograms show the distributions of means for many samples of each size.

b) Explain how these histograms demonstrate what the Central Limit Theorem says about the sampling distribution model for sample means. Be sure to talk about shape, center, and spread.

c) Comment on the “rule of thumb” that “With a sample size of at least 30, the sampling distribution of the mean is Normal.”

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Number of CEO's 400 300 200 100 0- 0 100,000 200,000 Compensation in $1000