Private colleges and universities rely on money contributed by individuals and corporations for their operating expenses. Much of this money is put into a fund called an endowment, and the college spends only the interest earned by the fund. A recent survey of 8 private colleges in the United States revealed the following endowments (in millions of dollars): 60.2, 47.0, 235.1, 490.0, 122.6, 177.5, 95.4, and 220.0. Summary statistics yield = 180.975 and S = 143.042. Calculate a 95% confidence interval for the mean endowment of all the private colleges in the United States assuming a normal distribution for the endowments.

		$180.975 $99.123
		$180.975 $94.066
		$180.975 $119.586
		$180.975 $116.621

2.5 points

QUESTION 9

It is desired to estimate the mean total compensation of CEOs in the Service industry. Data were randomly collected from 18 CEOs and the 95% confidence interval was calculated to be ($2,181,260, $5,836,180). Based on the interval above, do you believe the mean total compensation of CEOs in the Service industry is more than $3,000,000?

		Yes, and I am 95% confident of it.
		I am 95% confident that the mean compensation is $3,000,000.
		Yes, and I am 78% confident of it.
		I cannot conclude that the mean exceeds $3,000,000 at the 95% confidence level.