SOLUTION:
Step 1 :
In this question, we are told that a marketing research company needs to estimate the average total compensation of CEOs in the service industry.
We also have that: Data were randomly collected from 38 CEOs and the 98% confidence interval was calculated to be ($2,181,260, $5,836,180).
Then, we are asked to find the margin error for the confidence interval.
Step 2:
We need to recall that:
It means that:
where,
putting the values into the equation for the margin of error, we have that:
CONCLUSION:
The margin error for the confidence interval is 1, 827, 460