Session 3: Quantitative Methods: Application Reading 10: Sampling and Estimation
LOS h: Explain the construction of confidence intervals.
Which of the following statements regarding confidence intervals is most accurate?
A) |
The lower the alpha level, the wider the confidence interval. | |
B) |
The lower the degree of confidence, the wider the confidence interval. | |
C) |
The higher the alpha level, the wider the confidence interval. | |
A higher degree of confidence requires a wider confidence interval. The degree of confidence is equal to one minus the alpha level, and so the wider the confidence interval, the higher the degree of confidence and the lower the alpha level. Note that the lower alpha level requires a higher reliability factor which results in the wider confidence interval. |