Mal-Tia23 Bear Pass Login Mox Week at a Glunce re https/ htmil He Save & Enn su.

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Mal-Tia23 Bear Pass Login Mox Week at a Glunce re https/ htmil He Save & Enn su. An analyst takes a random sample of 25 firms in the telecommunications industry and constructs a confidence ntervai for the mean return for the prior year Holding all eise constant in standard error of the mean and the width of the confidence interval affected? he increased the sample sze to 30 firms,how are the Width of confidence interval 010434 Increases Increases Decreases Decreases Becomes wider Becones narrower Becomes wider Becomes narrower Multiple Choice t96no 24,6) Next> 24 o, 70

Explanation / Answer

Ans:

We know that

standard error of mean=standard deviation/sqrt(n)

Now,if we increase the sample size,n,standard error of mean decreases.

Margin of error=z*standard error of mean

So,if sample size increases,standard error of mean decreases,so margin of error decreases,hence Confidence interval becomes narrower.

Option D is correct(Decreases,Becomes narrower)

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