Question

Identify whether the corresponding statements are correct or incorrect

a) As sample size increases, confidence intervals narrow .

b) As confidence levels increase, the confidence interval narrows.

c) If 2 variables have high correlation, one could conclude that a cause and effect relationship is shared between them.

d) In hypothesis tests, an individual could make the same conclusion if the decision is based on using confidence intervals and standardized statistic, but not when using the p value as a basis.

e) If a null hypothesis is rejected at α = 0.01 , then the same null hypothesis would always be rejected at α=0.199

Answer 1

(a) True

>> As sample size increases, confidence intervals narrow .

b) False

>> As confidence levels increase, the confidence interval becomes wider.

c) False

>> Correlation is not causation i.e., just because two things correlate does not necessarily mean that one causes the other.

d) False

>> In hypothesis tests, an individual could make the same conclusion if the decision is based on using confidence intervals, standardized statistic or using the p value as a basis.

e) True

>> If a null hypothesis is rejected at α = 0.01 , then the same null hypothesis would always be rejected at α=0.199