mples of Size 3Ó Samples of Size 50 350 250 300 200 250 150 200 150 - 100 100 50 50 5000 15,000 25,000 5000 20,000 Sample Mean Compensation ($1000) Sample Mean Compensation ($1000) Samples of Size 100 Samples of Size 200 250 150 200 150 100 100 50 6000 20,000 8000 14,000 Sample Mean Compensation ($1000) Sample Mean Compensation ($1000) Number of Samples Number of Samples Number of Samples Number of Samples

Elementary Geometry For College Students, 7e
7th Edition
ISBN:9781337614085
Author:Alexander, Daniel C.; Koeberlein, Geralyn M.
Publisher:Alexander, Daniel C.; Koeberlein, Geralyn M.
ChapterP: Preliminary Concepts
SectionP.CT: Test
Problem 1CT
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CEO compensation In Chapter 5 we saw the distribution
of the total compensation of the chief executive officers
(CEOs) of the 800 largest U.S. companies (the Fortune
800). The average compensation (in thousands of dollars)
is 10,307.31 and the standard deviation is 17,964.62.
Here is a histogram of their annual compensations (in
$1000):

a) Describe the histogram of Total Compensation.
A research organization simulated sample means by
drawing samples of 30, 50, 100, and 200, with replace-
ment, from the 800 CEOs. The histograms show the
distributions of means for many samples of each size.
b) Explain how these histograms demonstrate what the
Central Limit Theorem says about the sampling distri-
bution model for sample means. Be sure to talk about
shape, center, and spread.
c) Comment on an oft-cited “rule of thumb” that “With a
sample size of at least 30, the sampling distribution of
the mean is Normal.”
mples of Size 3Ó
Samples of Size 50
350
250
300
200
250
150
200
150 -
100
100
50
50
5000 15,000 25,000
5000
20,000
Sample Mean Compensation
($1000)
Sample Mean Compensation
($1000)
Samples of Size 100
Samples of Size 200
250
150
200
150
100
100
50
6000
20,000
8000
14,000
Sample Mean Compensation
($1000)
Sample Mean Compensation
($1000)
Number of Samples
Number of Samples
Number of Samples
Number of Samples
Transcribed Image Text:mples of Size 3Ó Samples of Size 50 350 250 300 200 250 150 200 150 - 100 100 50 50 5000 15,000 25,000 5000 20,000 Sample Mean Compensation ($1000) Sample Mean Compensation ($1000) Samples of Size 100 Samples of Size 200 250 150 200 150 100 100 50 6000 20,000 8000 14,000 Sample Mean Compensation ($1000) Sample Mean Compensation ($1000) Number of Samples Number of Samples Number of Samples Number of Samples
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