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The highly respected financial magazine Forbes publishes data on CEO salaries each year. At the end of 2005, Forbes posted CEO compensation data to its Web site (www.forbes.com/2005/04/20/05ceoland. html). These data reflect the total compensation for CEOs for 496 of the nation's 500 largest companies and are listed in a file called CEO Compensation.
a. Treating the data in the file as the population of interest, compute the population mean and standard deviation for CEO compensation.
b. Use either Excel or Minitab to select a simple random sample of n = 100 executive compensation amounts. Compute the sample mean for this sample. Find the probability of getting a sample mean as extreme or more extreme than the one you got. (Hint: Use the finite population correction factor because the sample is large relative to the size of the population.)
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