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Chapter 8: Q.48 (page 480)

Why would the error bound change if the confidence level were lowered to95%?

Short Answer

Expert verified

The error bound will become smaller if the confidence level were lowered to95%,

Step by step solution

01

Given information

Given in the question that, One hundred eight Americans were surveyed to determine the number of hours they spend watching television each month. It was revealed that they watched an average of 151hours each month with a standard deviation of 32hours. Assume that the underlying population distribution is normal.

02

Explanation

Assume the confidence level is lowered to 95%.

The formula for error bound is given below,

EBM=tn−1α2sn

So decline in confidence level will reduce the error bound because, as the confidence level declines the area under the curve to capture the true population means is less.

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Most popular questions from this chapter

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