Question: CEO compensation. A sample of 20 CEOs from the Forbes 500 shows total annual compensations ranging from a minimum of $0.1 to $62.24 million. The average for these 20 CEOs is $7.946 million. Here's a histogram:
Based on these data, a computer program found that a 95% confidence interval for the mean annual compensation of all Forbes 500 CEOs is (1.69, 14.20) $ million. Why should you be hesitant to trust this confidence interval?