A marketing research company is estimating the average total compensation of CEOs in the service industry. Data were randomly collected from 18 CEOs and the 99% confidence interval for
The mean was calculated to be ($2,181,260, $5,836,180). Explain what the phrase ʺ99% confidentʺ
Means.
A) $99 \%$ of the similarly constructed intervals would contain the value of the sample mean.
B) $99 \%$ of the sample means from similar samples fall within the interval.
C) In repeated sampling, $99 \%$ of the intervals constructed would contain $\mu$.
D) $99 \%$ of the population values will fall within the interval.

Question

A marketing research company is estimating the average total compensation of CEOs in the service industry. Data were randomly collected from 18 CEOs and the 99% confidence interval for
The mean was calculated to be ($2,181,260, $5,836,180). Explain what the phrase ʺ99% confidentʺ
Means. 
A) $99 \%$ of the similarly constructed intervals would contain the value of the sample mean.
B) $99 \%$ of the sample means from similar samples fall within the interval.
C) In repeated sampling, $99 \%$ of the intervals constructed would contain $\mu$.
D) $99 \%$ of the population values will fall within the interval.

Quizplus · Accepted Answer

The phrase "99% confident" in the context of a confidence interval means that if we were to take many samples and construct a confidence interval in the same way for each sample, 99% of these intervals would contain the true population mean ($\mu$). This is a fundamental concept in inferential statistics, reflecting the reliability of the confidence interval method rather than the variability of the sample itself or the population values.

A Marketing Research Company Is Estimating the Average Total Compensation 99%99 \%99%

A Marketing Research Company Is Estimating the Average Total Compensation $99 \%$