It Is Desired to Estimate the Mean Total Compensation of CEOs

question 39

Multiple Choice

It is desired to estimate the mean total compensation of CEOs in the Service industry.Data were randomly collected from 18 CEOs and the 95% confidence interval was calculated to be ($2,181,260, $5,836,180) .Based on the interval above,do you believe the mean total compensation of CEOs in the Service industry is more than $3,000,000?

• A)Yes,and I am 95% confident of it.
• B)Yes,and I am 78% confident of it.
• C)I am 95% confident that the mean compensation is $3,000,000.
• D)I cannot conclude that the mean exceeds $3,000,000 at the 95% confidence level.

---

Definitions:

Income Statement

Also known as profit and loss statement, it details a company’s financial performance, including sales, expenses, and profits over a period.

Owner's Equity Statement

An owner's equity statement is a financial document that shows changes in the equity of a company's owners over a period.

Owner's Capital

The amount of equity a business owner has in the company, representing their investment plus any retained earnings or losses.

Accounts Payable

Liabilities or amounts owed by a company to its creditors/vendors for goods and services received but not yet paid for.