A Researcher Takes a Sample of 500 Executives in Large

question 40

Multiple Choice

A researcher takes a sample of 500 executives in large U.S. corporations. In the sample the average annual income for the executives is $500,000. Our researcher estimates the value of the standard error to be $10,000. Complete the following statements: "The sample result was $500,000 with a margin of error of ___________ and a level of confidence of 95 percent."

• A) $1,000
• B) $10,000
• C) $20,000
• D) $480,000

---

Definitions:

Z Score

A statistical measurement that describes a value's relationship to the mean of a group of values, measured in terms of standard deviations.

Mean

The average of a set of numbers, calculated by adding all the numbers together and then dividing by the count of the numbers.

Inferential Statistics

Involves making predictions or inferences about a population based on a sample of data.

Probability

A measure of the likelihood that a particular event will occur, usually expressed as a number between 0 and 1.