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 Explain what the phrase " 99 % confident" means.

Answer 1

Explanation:

Confidence interval measures the degree of uncertainty and certainty and comprises a range of values that might contain an unknown population parameter. A 99% confidence interval means we can expect that 99% of the 18 samples taken contains the parameter mean values between the upper and the lower bound values from the data collected from the 18 CEOs.