jasonhptan

Confidence Level

3 posts in this topic

Hi guys, can someone help me with this question and also possibly explain? thanks 

 

If we change the confidence level from 95% to 90% when constructing a confidence interval for a population mean, we can expect the size of the interval to

Select one:
- Increase ?
- Increase in positive direction only
- Increase in negative direction only
 - Decrease
 - Not change

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Decrease

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Answer: Decrease

If the degree of confidence is raised, the intervals or range of values within which we can call the true mean value to be present will also increase. At times, this may even cross point of no significance. Arbitrarily, similar to the p-value of 0.05, we use confidence limits of 95%.

As the degree of confidence has been reduced, the range within which we can call the true value to be present will be reduce i.e size of interval will decrease 

 

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