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).
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!
Get Answers For Free
Most questions answered within 1 hours.