2. Executive compensation has risen dramatically compared to the rising levels of an average workers wage over the years. Sarah is an MBA student who decides to use her statistical skills to estimate the mean CEO compensation in 2010 for all large companies in the United States. She takes a random sample of six CEO compensations (in $ millions) as shown in the accompanying table.

a. Construct the 94% confidence interval for the mean CEO compensation for all large companies in the United States.

b. How can the margin of error reported in part a be reduced?

Firm Intel Coca-Cola Wells Fargo Caterpillar McDonalds U.S Bancorp Compensation 8.20 2.76 6.57 3.88 6.56 4.10 Firm Intel Coca-Cola Wells Fargo Caterpillar McDonalds U.S Bancorp Compensation 8.20 2.76 6.57 3.88 6.56 4.10