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Confidence Interval Changes State whether each of the following changes would make a confidence interval wider or narrower. (Assume that nothing else changes.) a. Changing from a \(90 \%\) confidence level to a \(99 \%\) confidence level b. Changing from a sample size of 30 to a sample size of 200 c. Changing from a standard deviation of 20 pounds to a standard deviation of 25 pounds

Short Answer

Expert verified
a. The confidence interval would become wider. b. The confidence interval would become narrower. c. The confidence interval would become wider.

Step by step solution

01

Response to Situation A

When the confidence level increases from \(90\%\) to \(99\%\), the Z score also increases (as you are demanding more certainty about the sample mean being representative of the population mean). Hence, the width of the confidence interval would increase. Therefore, the confidence interval becomes wider.
02

Response to Situation B

When the sample size increases from 30 to 200, the denominator in the term \(\frac{\sigma}{\sqrt{n}}\) increases. As a result, the value of \(Z \cdot \frac{\sigma}{\sqrt{n}}\) decreases, hence reducing the width of the confidence interval. Therefore, the confidence interval becomes narrower.
03

Response to Situation C

When the standard deviation increases from 20 to 25, the numerator in the term \(\frac{\sigma}{\sqrt{n}}\) increases. As a result, the value of \(Z \cdot \frac{\sigma}{\sqrt{n}}\) increases and hence the width of the confidence interval increases. Therefore, the confidence interval becomes wider.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Confidence Level
The confidence level is a crucial concept in statistics, reflecting how certain we are that a confidence interval contains the true population parameter. The confidence level is often expressed as a percentage, such as 90% or 99%.
  • When you choose a higher confidence level, such as moving from 90% to 99%, you are aiming for greater certainty. This means you are saying, "I want to be more confident that the interval captures the true parameter."
  • As a result, the interval becomes wider to accommodate this increased certainty. It acts like casting a wider net to ensure you catch the correct parameter.
Understanding this can help you decide what level of confidence is appropriate based on the trade-off between certainty and precision. A higher confidence level means more certainty, but it also means a less precise estimate.
Sample Size
Sample size directly impacts the width of a confidence interval. A larger sample size can lead to more precise estimates.
  • When you increase the sample size, like going from 30 to 200, the confidence interval tends to become narrower. This is because you're getting more data, which generally leads to a more accurate estimate of the population mean.
  • The mathematical reasoning behind this involves the formula for the standard error: \( \frac{\sigma}{\sqrt{n}} \), where \( n \) is the sample size.
The denominator \( \sqrt{n} \) increases with larger sample sizes, reducing the overall value of the standard error, making the confidence interval narrower. Hence, larger samples provide more precise insights into the population.
Standard Deviation
Standard deviation measures the amount of variability or dispersion in a dataset. It directly influences the width of a confidence interval.
  • If the standard deviation increases, like from 20 pounds to 25 pounds, the confidence interval width increases. This is because greater variability means there's more uncertainty about the sample mean as an estimate of the population mean.
  • The formula \( Z \cdot \frac{\sigma}{\sqrt{n}} \) shows that an increase in \( \sigma \) (standard deviation) results in a larger product, thereby extending the interval.
In simple terms, if the data points are more spread out, we need to make the interval wider to maintain the same confidence level. Hence, a higher standard deviation reflects more variability and wider confidence intervals.

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Most popular questions from this chapter

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