A 90% Confidence Interval for the Average Salary of All

question 117

Multiple Choice

A 90% confidence interval for the average salary of all CEOs in the electronics industry was constructed using the results of a random survey of 45 CEOs. The interval was ($133,306, $150,733) .
To make more useful inferences from the data, it is desired to reduce the width of the confidence interval. Which of the following will result in a reduced interval width?

• A) Decrease the sample size and increase the confidence level.
• B) Increase the sample size and decrease the confidence level.
• C) Increase the sample size and increase the confidence level.
• D) Decrease the sample size and decrease the confidence level.

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Definitions:

Denominator Activity Levels

Denominator activity levels refer to the levels of activity used to allocate fixed costs to products or services under activity-based costing or other costing methodologies.

Efficiency Variances

The difference between the actual amount of resources used in production and the standard amount expected, showing how efficiently resources are being used.

Volume Variances

are differences between the expected (budgeted) volumes of production or sales and the actual volumes, impacting revenue, costs, and profits.

Budget Variance

The difference between budgeted and actual amounts for a particular accounting category.