CONFIDENCE INTERVAL ESTIMATION
1.
The width of a confidence interval estimate for a proportion will be
a)
narrower for 99% confidence than for 95% confidence.
b)
wider for a sample size of 100 than for a sample size of 50.
c)
narrower for 90% confidence than for 95% confidence.
d)
narrower when the sample proportion is 0.50 than when the sample proportion is 0.20.
2.
A 99% confidence interval estimate can be interpreted to mean that
a)
if all possible samples are taken and confidence interval estimates are developed, 99% of
them would include the true population mean somewhere within their interval.
b)
we have 99% confidence that we have selected a sample whose interval does include the
population mean.
c)
both of the above
d)
none of the above
3.
It is desired to estimate the average total compensation of CEOs in the Service industry. Data
were randomly collected from 18 CEOs and the 97% confidence interval was calculated to be
($2,181,260, $5,836,180). Which of the following interpretations is correct?
a)
97% of the sampled total compensation values fell between $2,181,260 and $5,836,180.
b)
We are 97% confident that the mean of the sampled CEOs falls in the interval
$2,181,260 to $5,836,180.
c)
In the population of Service industry CEOs, 97% of them will have total compensations
that fall in the interval $2,181,260 to $5,836,180.
d)
We are 97% confident that the average total compensation of all CEOs in the Service
industry falls in the interval $2,181,260 to $5,836,180.
4.
It is desired to estimate the average total compensation of CEOs in the Service industry. Data
were randomly collected from 18 CEOs and the 97% confidence interval was calculated to be
($2,181,260, $5,836,180). Based on the interval above, do you believe the average total
compensation of CEOs in the Service industry is more than $3,000,000?
a)