. a marketing research company needs to estimate the average total compensation
ID: 3220401 • Letter: #
Question
. a marketing research company needs to estimate the average total compensation of CEO's in the service industry. data were randomly collected from 18 CEO's and the 97% confidence interval was calculated to be ($2,181,260, $5,836,180). what would happen to the confidence interval above if the confidence level were changed to 95%A) there would be no change in the interval width B) the interval width wools get narrower C) the interval would get wider D) it is impossible to tell until the 95% interval is constructed . a marketing research company needs to estimate the average total compensation of CEO's in the service industry. data were randomly collected from 18 CEO's and the 97% confidence interval was calculated to be ($2,181,260, $5,836,180). what would happen to the confidence interval above if the confidence level were changed to 95%
A) there would be no change in the interval width B) the interval width wools get narrower C) the interval would get wider D) it is impossible to tell until the 95% interval is constructed . a marketing research company needs to estimate the average total compensation of CEO's in the service industry. data were randomly collected from 18 CEO's and the 97% confidence interval was calculated to be ($2,181,260, $5,836,180). what would happen to the confidence interval above if the confidence level were changed to 95%
A) there would be no change in the interval width B) the interval width wools get narrower C) the interval would get wider D) it is impossible to tell until the 95% interval is constructed
Explanation / Answer
As the confidence level gets lower from 97% to 95% confidence we have to be less sure that the true population average total compensation of CEO's in the service industry lies in that interval which means that the confidence interval could be narrower . Therefore as the confidence interval decreases, the interval width would get narrower. Therefore B) is the correct answer.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.