STATISTICAL TECHNIQUES AND TOOLS
CONFIDENCE INTERVALS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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increasing the confidence level, increasing the sample size
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decreasing the confidence level, decreasing the sample size
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increasing the confidence level, decreasing the sample size
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decreasing the confidence level, increasing the sample size.
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Detailed explanation-1: -A larger sample size or lower variability will result in a tighter confidence interval with a smaller margin of error. A smaller sample size or a higher variability will result in a wider confidence interval with a larger margin of error.
Detailed explanation-2: -Expert Answer A) Increasing the sample size, decreases the width of confidence intervals, because it decreases the standard error.
Detailed explanation-3: -Increasing the confidence level increases the error bound, making the confidence interval wider. Decreasing the confidence level decreases the error bound, making the confidence interval narrower.
Detailed explanation-4: -As we decrease the confidence level, the t-multiplier decreases, and hence the width of the interval decreases. In practice, we wouldn’t want to set the confidence level below 90%. As we increase the sample size, the width of the interval decreases.