Quant

manabmajumdar20
Posts: 2
Joined: Tue Jul 26, 2016 3:39 am

Quant

Postby manabmajumdar20 » Sat Nov 12, 2016 6:37 pm

All else held constant, the width of a confidence interval is most likely to be smaller if the sample size is:
A. larger and the degree of confidence is lower.
B. larger and the degree of confidence is higher.
C. smaller and the degree of confidence is lower.


The answer in curriculum is A .( I guess it is wrong )

But for a given significance level , if the degree of freedom is higher the confidence interval will be smaller as with increase in df the t-table values go smaller in number .

Please help on this

edupristine
Finance Junkie
Posts: 722
Joined: Wed Apr 09, 2014 6:28 am

Re: Quant

Postby edupristine » Mon Nov 14, 2016 4:26 am

Hi Manab

According to Confidence interval formula

The width of interval is smaller when:

1. n is larger which means sample size is larger

2. z is smaller which means degree of confidence is lower
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