Question

8. State three parameter conditions that determines how we calculate confidence interval.

Answer 1

Three parameter conditions that determine how we calculate confidence interval are given below

(1) First, we need to undersstand what distribution to use, i.e. either z test or t test based on the population variance is known or not.

(2) Second, we need to find what is the significance level according to question and need to find its corresponding z or t value whichever is required.

(2) Third, we need to calculate the margin of error for the corresponding confidence level.