Question

With what kinds of problems or programs would you feel it necessary to have a larger sample that would give you a margin of error of 5 percent and a confidence level of 95 percent, as opposed to a smaller sample giving you a margin of error of 10 percent and a level of confidence of 90 percent?

Answer 1

Answer:-

A confidence internal of 95% would mean out of the 100 times the experiment is performed the required estimate out fall within the given confidence internal 95 times whereas a confidence internal of 90% would mean the error margin will increase to 10% and out of 100 times the estimate would be within its confidence internal 90 times. As number of samples (n) increase the confidence internal becomes closter and we can approach the true value of the parameter closely if margin of error increase then the type 1st error probability increase and null hypothesis though true are rejected which is ultimately bad for testing of hypothesis so as the sample size increases we tend to get better confidence internal.

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