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Chapter 8: Q 8.29 (page 330)

What is meant by saying that a 1-αconfidence interval is

a. exact?

b. approximately correct?

Short Answer

Expert verified

a. By exact, we mean that confidence level is exactly equal to 1-α.

b. By approximately correct, we mean that confidence intervals are approximately correct.

Step by step solution

01

Given Information

We are given that confidence interval is 1-α.

02

Meaning of exact confidence level

100(1-α)%exact confidence interval means that confidence level is exactly equal to 1-α. It mean the probability that population parameter unknown value is within confidence limits and is 1-α exactly.

03

Meaning of approximately correct confidence level 

It signifies that confidence level is equal to 1-αapproximately. It means that probability unknown parameter is within confidence limits is approximately equal to 1-α. This confidence is approximately correct.

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