A 99 confidence interval for the average salary of all CEOs

A 99% confidence interval for the average salary of all CEOs in the electronics industry was constructed using the results of a random survey of 45 CEOs. The interval was ($135,463, $147,088). Give a practical interpretation of the interval.

Solution

We are 99% confident that the true mean salary of all CEOs in the electronics industry is between $135,463 to $147,088.

Thus, repeating this experiment many times, we expect to get the true mean within our interval 99% of the time.