2. A 95% 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 ($138,390, $176,345). 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? Increase the sample size and increase the confidence level. Decrease the sample size and increase the confidence level. Decrease the sample size and decrease the confidence level. Increase the sample size and decrease the confidence level.

MATLAB: An Introduction with Applications
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ISBN:9781119256830
Author:Amos Gilat
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**Question 2: Confidence Interval Analysis**

A 95% 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 ($138,390, $176,345). To make more useful inferences from the data, it is desired to reduce the width of the confidence interval. 

**Question:** Which of the following will result in a reduced interval width?

- Increase the sample size and increase the confidence level.
- Decrease the sample size and increase the confidence level.
- Decrease the sample size and decrease the confidence level.
- Increase the sample size and decrease the confidence level. 

**Discussion:**

To reduce the width of the confidence interval, one effective strategy is to increase the sample size, as larger samples tend to produce more precise estimates with narrower intervals. Additionally, reducing the confidence level can also narrow the interval since it allows for a trade-off with certainty. The combination of these actions will impact the interval width significantly.
Transcribed Image Text:**Question 2: Confidence Interval Analysis** A 95% 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 ($138,390, $176,345). To make more useful inferences from the data, it is desired to reduce the width of the confidence interval. **Question:** Which of the following will result in a reduced interval width? - Increase the sample size and increase the confidence level. - Decrease the sample size and increase the confidence level. - Decrease the sample size and decrease the confidence level. - Increase the sample size and decrease the confidence level. **Discussion:** To reduce the width of the confidence interval, one effective strategy is to increase the sample size, as larger samples tend to produce more precise estimates with narrower intervals. Additionally, reducing the confidence level can also narrow the interval since it allows for a trade-off with certainty. The combination of these actions will impact the interval width significantly.
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