Following is the total compensation, in millions of dollars, for Chief Executive Officers (CEOs) at 20 large U.S. corporations in a recent year. 2.75 9.15 2.32 23.84 13.12 9.91 6.39 2.19 4.28 0.70 3.18 8.20 1.68 4.64 6.05 6.59 11.31 1.35 25.84 2.85 A research firm would like to analyze the mean compensation of CEOs in the U.S. and has decided to construct a 99% confidence interval to estimate the mean compensation amount. Explain why it is necessary to check whether the population is approximately normal before constructing a confidence interval. Is it reasonable to assume that this sample came from a normal population? Explain. If appropriate, construct a 99% confidence interval for the mean compensation of a CEO in the U.S. using Excel procedures similar to those used in the previous problems. If it is not appropriate to construct the confidence interval, then explain why it is not appropriate.
Following is the total compensation, in millions of dollars, for Chief Executive Officers (CEOs) at 20 large U.S. corporations in a recent year.
2.75 9.15 2.32 23.84 13.12 9.91 6.39 2.19 4.28 0.70
3.18 8.20 1.68 4.64 6.05 6.59 11.31 1.35 25.84 2.85
A research firm would like to analyze the mean compensation of CEOs in the U.S. and has decided to construct a 99% confidence
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Explain why it is necessary to check whether the population is approximately normal before constructing a confidence interval.
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Is it reasonable to assume that this sample came from a normal population? Explain.
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If appropriate, construct a 99% confidence interval for the mean compensation of a CEO in the U.S. using Excel procedures similar to those used in the previous problems. If it is not appropriate to construct the confidence interval, then explain why it is not appropriate.
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