Question
Chapter 8. Based on the CEO pay review report by CG Analytics in 2019, a researcher claims with 98% confidence that the total compensation in
Chapter 8. Based on the CEO pay review report by CG Analytics in 2019, a researcher claims with 98% confidence that the total compensation in millions for the top CEOs in the country was lower than 30 million per CEO, if Elon Musk (total compensation of $2.9B) was not included on account of him being an outlier. The following table represents a sample of the total compensation in millions of dollars for 20 CEOs.
44 | 69 | 44 | 31 |
17 | 27 | 43 | 30 |
18 | 28 | 42 | 30 |
78 | 64 | 41 | 29 |
72 | 51 | 38 | 29 |
Use this sample data to answer the following questions and to construct a 98% confidence interval for the mean compensation of CEO's for these top firms. Use the Student's t-distribution. Round to 2 decimal spaces unless specified otherwise.
- Sample mean =
- Sample standard deviation =
- Value of significance t =
- 98% Confidence interval: Lower Limit = and Upper Limit =
- The claim of the researcher is valid. Answer "True" or "False" based on your sample test conducted above:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started