Homework SourseSuppose you have decided to gather some fixed number n of ob
Suppose you have decided to gather some fixed number n of observations, and create a confidence interval at some confidence level c, where the variance of the underlying population is known to be o^2. Before you even gather your n numbers, you already know how long the confidence interval will be. Explain why.
Suppose you have decided to gather some fixed number n of observations, and create a confidence interval at some confidence level c, where the variance of the underlying population is known to be o^2. Before you even gather your n numbers, you already know how long the confidence interval will be. Explain why.
Solution
because the confidence interval is mainly characterized by the confidence level c.
it is the c that defines the length of the confidence interval.
in general if [T1,T2] be the confidence interval then its length l=T2-T1 is independent of n and solely depends on c.
hence even before gathering n numbers, you already know how long the confidence interval will be
