A Marketing Research Company Is Estimating the Average Total Compensation

question 83

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 90% 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 distribution of the sample means is approximately normal.
• B)The sample standard deviation is less than the degrees of freedom.
• C)None. The Central Limit Theorem applies.
• D)The population of total compensations of CEOs in the service industry is approximately normally distributed.