# Question

Suppose in the previous question that the analyst had randomly chosen 12 CEO compensations for 2006.

a. Is it necessary to apply the finite population correction factor? Explain.

b. Is the sampling distribution of the sample mean approximately normally distributed? Explain.

c. Calculate the expected value and the standard error of the sample mean.

d. Can you use the normal approximation to calculate the probability that the sample mean is more than $12 million? Explain.

a. Is it necessary to apply the finite population correction factor? Explain.

b. Is the sampling distribution of the sample mean approximately normally distributed? Explain.

c. Calculate the expected value and the standard error of the sample mean.

d. Can you use the normal approximation to calculate the probability that the sample mean is more than $12 million? Explain.

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