mples of Size 3Ó Samples of Size 50 350 250 300 200 250 150 200 150 - 100 100 50 50 5000 15,000 25,000 5000 20,000 Sample Mean Compensation ($1000) Sample Mean Compensation ($1000) Samples of Size 100 Samples of Size 200 250 150 200 150 100 100 50 6000 20,000 8000 14,000 Sample Mean Compensation ($1000) Sample Mean Compensation ($1000) Number of Samples Number of Samples Number of Samples Number of Samples

College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter8: Sequences, Series, And Probability
Section8.7: Probability
Problem 58E: What is meant by the sample space of an experiment?
icon
Related questions
icon
Concept explainers
Topic Video
Question

CEO compensation In Chapter 5 we saw the distribution
of the total compensation of the chief executive officers
(CEOs) of the 800 largest U.S. companies (the Fortune
800). The average compensation (in thousands of dollars)
is 10,307.31 and the standard deviation is 17,964.62.
Here is a histogram of their annual compensations (in
$1000):

a) Describe the histogram of Total Compensation.
A research organization simulated sample means by
drawing samples of 30, 50, 100, and 200, with replace-
ment, from the 800 CEOs. The histograms show the
distributions of means for many samples of each size.
b) Explain how these histograms demonstrate what the
Central Limit Theorem says about the sampling distri-
bution model for sample means. Be sure to talk about
shape, center, and spread.
c) Comment on an oft-cited “rule of thumb” that “With a
sample size of at least 30, the sampling distribution of
the mean is Normal.”
mples of Size 3Ó
Samples of Size 50
350
250
300
200
250
150
200
150 -
100
100
50
50
5000 15,000 25,000
5000
20,000
Sample Mean Compensation
($1000)
Sample Mean Compensation
($1000)
Samples of Size 100
Samples of Size 200
250
150
200
150
100
100
50
6000
20,000
8000
14,000
Sample Mean Compensation
($1000)
Sample Mean Compensation
($1000)
Number of Samples
Number of Samples
Number of Samples
Number of Samples
Transcribed Image Text:mples of Size 3Ó Samples of Size 50 350 250 300 200 250 150 200 150 - 100 100 50 50 5000 15,000 25,000 5000 20,000 Sample Mean Compensation ($1000) Sample Mean Compensation ($1000) Samples of Size 100 Samples of Size 200 250 150 200 150 100 100 50 6000 20,000 8000 14,000 Sample Mean Compensation ($1000) Sample Mean Compensation ($1000) Number of Samples Number of Samples Number of Samples Number of Samples
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 6 images

Blurred answer
Knowledge Booster
Centre, Spread, and Shape of a Distribution
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, geometry and related others by exploring similar questions and additional content below.
Recommended textbooks for you
College Algebra (MindTap Course List)
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning
Glencoe Algebra 1, Student Edition, 9780079039897…
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill