Question

Which of the following is true about confidence intervals? I. If the sample size increases, the...

Which of the following is true about confidence intervals?
I. If the sample size increases, the width of the confidence interval tends to increase.
II. If the sample size increases, we will have a higher level of confidence that the confidence interval contains the parameter.

A) Both (I) and (II).

B) Only (II).

C) Only (I).

D) Neither (I) nor (II).

Homework Answers

Answer #1

Correct option :- D ; Neither (I) or (II)

Reason : Option (I) is incorrect since as the sample size increases, the width of the confidence interval tends to decrease.
And option (II) is also incorrect since the level of confidence is (1-level of significane) i.e.
level of confidence = 1 -
Thus, the level of confidence varies with the changes in values and therefore is not affected by the sample size whereas the increase in sample size would lead to an increase in the accuracy.

Hope this answers your query!

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