Suppose we calculate a 99% confidence interval and it is (-2, 5). Describe the area associated with making a mistake a)Bell shaped curve with -1.8 and 5.25 on either end. 5% chance of mistake for -1.8 or less and 5.25 or more (each). b)Bell shaped curve with -2 and 5 on either end. 5% chance of mistake for -2 or less and 5 or more (each). c)Bell shaped curve with -2 and 5 on either end. 0.5% chance of mistake for -2 or less and 5 or more (each). d)Bell shaped curve with -1.8 and 5.25 on either end. 0.5% chance of mistake for -1.8 or less and 5.25 or more (each).

The objective of the question is to understand the concept of confidence intervals and the…

Answered: Suppose we calculate a 99% confidence…

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Suppose we calculate a 99% confidence interval and it is (-2, 5). Describe the area associated with making a mistake

	a)	Bell shaped curve with -1.8 and 5.25 on either end. 5% chance of mistake for -1.8 or less and 5.25 or more (each).
	b)	Bell shaped curve with -2 and 5 on either end. 5% chance of mistake for -2 or less and 5 or more (each).
	c)	Bell shaped curve with -2 and 5 on either end. 0.5% chance of mistake for -2 or less and 5 or more (each).
	d)	Bell shaped curve with -1.8 and 5.25 on either end. 0.5% chance of mistake for -1.8 or less and 5.25 or more (each).