A Marketing Research Company Is Estimating the Average Total Compensation

question 97

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 99% confidence interval for the mean was calculated to be ($2,181,260, $5,836,180) . What would happen to the confidence interval
if the confidence level were changed to 98%?

• A) The interval would get wider.
• B) There would be no change in the width of the interval.
• C) It is impossible to tell until the 98% interval is constructed.
• D) The interval would get narrower.

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Definitions:

Cash Dividend

A financial disbursement by a corporation to its stockholders, typically from earnings distribution.

Sales Adjusted

A metric reflecting changes or modifications to sales figures for purposes such as accounting adjustments or performance analysis.

Cost of Goods Sold

The direct costs tied to the production of the goods sold by a company, including direct labor, materials, and manufacturing overhead.

Direct Method

A cash flow statement preparation approach that lists major classes of gross cash receipts and payments.