A Marketing Research Company Is Estimating the Average Total Compensation

question 86

Multiple Choice

A marketing research company is estimating the average total compensation of CEOs in the service industry. Data were randomly collected from 18 CEOs and the 95% confidence interval for the mean was calculated to be ($2,181,260, $5,836,180) . What additional assumption is necessary for this confidence interval to be valid?

• A) The sample standard deviation is less than the degrees of freedom.
• B) None. The Central Limit Theorem applies.
• C) The population of total compensations of CEOs in the service industry is approximately normally distributed.
• D) The distribution of the sample means is approximately normal.

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Definitions:

Business-to-Government

Transactions conducted between companies and governmental bodies.

Consumer-to-Consumer

A type of commerce where private individuals trade goods, services, or information directly with each other, often facilitated by a third-party platform.

Higher-End Product

Goods that are considered of superior quality and higher price, often associated with luxury or premium branding.

Sales Process

A series of steps taken by a company to move a product or service from the initial contact with a potential customer to the final transaction.