exercise 7.99:

Coverage percent of 95% confidence interval. For this exercise, use the Confidence Interval applet. Set the confidence level at 95%, and click the "Sample" button 10 times to simulate 10 confidence intervals. Record the percent hit (that is, percent of intervals including the population mean). Simulate another 10 intervals by clicking another 10 times (do not click the "Reset" button). Record the percent hit for your 20 intervals. Repeat the process of simulating 10 additional intervals and recording the results until you have a total of 200 intervals. Plot your results and write summary of what you have found.

answer: applet, answers will vary. at first., the answer may not be close to 95% but eventually with enough repeats, the percent hits should be quite close to 95%

7.100 Coverage percent of 90% confidence interval. Refer to the previous exercise. Do the simulations and report the results for 90% confidence.

1. In Exercise 7.99. Create the plot by hand using a ruler and label both the x- and y-axis. Please write legibly. The y-axis should be '% Hit' and you can use whatever sample size (n) you like. Provide the sample size (n) in your answer and use the same sample size (n) for 7.100. ?
2. Complete Exercise 7.100. Create the plot by hand using a ruler and label both the x- and y-axis. Please write legibly and compare your results with Exercise 7.99. ?
3. Import Assignment4.gtd into gretl. A study of the pay of chief financial officers (CFOs) examined the increase in cash compensation of the CFOs of 104 companies, adjusted for inflation, in a recent year. Is there evidence that the mean real compensation ()of CFOs increased that year? Use an alpha level of 0.05.