Exhibit 8.4.According to a report in USA Today (February 1,2012),more and more parents are helping their young adult children get homes.Suppose 8 persons in a random sample of 40 young adults who recently purchased a home in Kentucky got help from their parents.You have been asked to construct a 95% confidence interval for the population proportion of all young adults in Kentucky who got help from their parents. Refer to Exhibit 8.4.If a 99% confidence interval is constructed instead of a 95% confidence interval for the population proportion,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

Increasing the confidence level from 95% to 99% results in a wider confidence interval, which increases the margin of error but decreases the risk of reporting an incorrect interval.

Exhibit 84