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Get Full Access to Stats Modeling The World - 4 Edition - Chapter 17 - Problem 38
Get Full Access to Stats Modeling The World - 4 Edition - Chapter 17 - Problem 38

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# CEOs revisited In Exercise 36 you looked at the annual compensation for 800 CEOs, for ISBN: 9780321854018 481

## Solution for problem 38 Chapter 17

Stats Modeling the World | 4th Edition

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Problem 38

CEOs revisited In Exercise 36 you looked at the annual compensation for 800 CEOs, for which the true mean and standard deviation were (in thousands of dollars) 10,307.31 and 17,964.62, respectively. A simulation drew samples of sizes 30, 50, 100, and 200 (with replacement) from the total annual compensations of the Fortune 800 CEOs. The summary statistics for these simulations were as follows: a) According to the Central Limit Theorem, what should the theoretical mean and standard deviation be for each of these sample sizes? b) How close are the theoretical values to what was observed from the simulation? c) Looking at the histograms in Exercise 36, at what sample size would you be comfortable using the Normal model as an approximation for the sampling distribution? d) What about the shape of the distribution of Total Compensation explains your answer in part c?

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Conditional Probability: probability of an event, given that another event has occurred P(A| B) is the probability of A, given that B has occurred P(A| B) is not the same as P(B|A) If events are independent then P(A)=P(A|B) and P(B)=P(B|A) A contingency table (two way table) is a visual representation of the relationships between the variable. They make probabilities easier to figure out. Levels of the explanatory variables are the rows of the table and response variables are the columns Risk=Number in category/Total number in group We can use a contingency table to calculate Relative Risk= risk in category 1/ risk in category 2 Baseline risk Percent change in risk= (relative risk – 1) 100% Positive means risk increases Negative means risk decreases If relative risk is 1 then the

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##### ISBN: 9780321854018

This full solution covers the following key subjects: . This expansive textbook survival guide covers 31 chapters, and 1357 solutions. Since the solution to 38 from 17 chapter was answered, more than 235 students have viewed the full step-by-step answer. The full step-by-step solution to problem: 38 from chapter: 17 was answered by , our top Statistics solution expert on 03/16/18, 04:57PM. Stats Modeling the World was written by and is associated to the ISBN: 9780321854018. This textbook survival guide was created for the textbook: Stats Modeling the World, edition: 4. The answer to “CEOs revisited In Exercise 36 you looked at the annual compensation for 800 CEOs, for which the true mean and standard deviation were (in thousands of dollars) 10,307.31 and 17,964.62, respectively. A simulation drew samples of sizes 30, 50, 100, and 200 (with replacement) from the total annual compensations of the Fortune 800 CEOs. The summary statistics for these simulations were as follows: a) According to the Central Limit Theorem, what should the theoretical mean and standard deviation be for each of these sample sizes? b) How close are the theoretical values to what was observed from the simulation? c) Looking at the histograms in Exercise 36, at what sample size would you be comfortable using the Normal model as an approximation for the sampling distribution? d) What about the shape of the distribution of Total Compensation explains your answer in part c?” is broken down into a number of easy to follow steps, and 143 words.

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