Consider the four outliers in the 2012 revenue data: companies with revenue of
$237 billion, $246 billion, $447 billion, and $453 billion. If we removed these
companies from the data set, what would happen to the standard deviation?
The answer cannot be determined without further information.
See correct answer for explanation.
A journalist wants to determine the average annual salary of CEOs in the S&P
1,500. He does not have time to survey all 1,500 CEOs but wants to be 95%
confident that his estimate is within $50,000 of the true mean. The journalist takes
a preliminary sample and estimates that the standard deviation is approximately
$449,300. What is the minimum number of CEOs that the journalist must survey
to be within $50,000 of the true average annual salary? Remember that the z-
value associated with a 95% confidence interval is 1.96.
Please enter your answer as an integer; that is, as a whole number with no decimal