Exhibit 8.1.The ages of MBA students at a university are normally distributed with a known population variance of 10.24.Suppose you are asked to construct a 95% confidence interval for the population mean age if the mean of a sample of 36 students is 26.5 years. Refer to Exhibit 8.1.If a 99% confidence interval is constructed instead of a 95% confidence interval for the population mean,then _____________.
A)The resulting margin of error will increase and the risk of reporting an incorrect interval will increase
B)The resulting margin of error will decrease and the risk of reporting an incorrect interval will increase
C)The resulting margin of error will increase and the risk of reporting an incorrect interval will decrease
D)The resulting margin of error will decrease and the risk of reporting an incorrect interval will decrease

Question

Quizplus · Accepted Answer

A 99% confidence interval is wider than a 95% confidence interval, resulting in an increased margin of error, but it decreases the risk of reporting an incorrect interval because it provides more confidence in capturing the true population mean.

Exhibit 81