It Is Desired to Estimate the Average Total Compensation of CEOs

question 9

Multiple Choice

It is desired to estimate the average 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) . Which of the following interpretations is correct?

• A) 95% of the sampled total compensation values fell between $2,181,260 and $5,836,180.
• B) We are 95% confident that the mean of the sampled CEOs falls in the interval $2,181,260 to $5,836,180.
• C) In the population of Service industry CEOs, 95% of them will have total compensations that fall in the interval $2,181,260 to $5,836,180.
• D) We are 95% confident that the average total compensation of all CEOs in the Service industry falls in the interval $2,181,260 to $5,836,180.

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Definitions:

Exotic Species

Species that are introduced to a new environment where they do not naturally occur, often leading to environmental changes and potentially becoming invasive species.

Keystone Species

This term refers to a species that plays a critical role in maintaining the structure of an ecological community and whose impact on the ecosystem is disproportionately large relative to its abundance.

Pioneer Species

First organisms to colonize previously disrupted or damaged ecosystems, beginning a chain of ecological succession that ultimately leads to a more biodiverse steady-state ecosystem.

Invasive Species

Non-native species that spread rapidly in a new ecosystem, often causing harm to native species and their habitats.