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A Marketing Research Company Is Estimating the Average Total Compensation

question 96

Essay

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 97% confidence interval was calculated to be ($2,181,260, $5,836,180). Give a practical interpretation of the confidence interval.


Definitions:

Symmetric

Equally balanced or identical in size or shape on both sides of a dividing line.

Variation

The measure of how data points in a data set differ from the mean value of the data set.

Percentile

A metric signifying the threshold under which a specified proportion of entries in a dataset are found.

Measurements

Quantitative data collected by noting the extent, dimension, quantity, or capacity of something using standard units.

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