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Chapter 8: Q.37 (page 479)

Using the same mean, standard deviation, and sample size, how would the error bound change if the confidence level were reduced to 90%? Why?

Short Answer

Expert verified

The error bound become smaller

Step by step solution

01

Given Information

Suppose the confidence level was reduced to 90%from 95%.

Also, the mean standard deviation and the sample size is the same

02

Explanation

As the formula for error bound is given below,

EBM=za2蟽n

EBM=za2蟽n

So decrease in confidence level will decrease the error bound because, as the confidence level decreases the area under the curve to capture the true population means is less. Hence the error bound will become smaller.

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