Without actually computing the 96% con dence interval using -3.587%, can you say

Question

Without actually computing the 96% con dence interval using -3.587%, can you say
that -2.8% is inside or outside of the 96% con dence interval? Why?

A confidence interval for the population mean Au tells us which values of Au are plausible (those inside the interval) and which values are not plausible (those outside the interval) at the chosen level of confidence. You can use this idea to carry out a test of any null hypoth esis Ho Au Ho starting with a confidence interval: reject Ho if Auo is outside the interval and fail to reject if is inside the interval. The alternative hypothesis is always two-sided a Au A40, because the confidence interval extends in both directions from T. A 95% confidence interval leads to a test at the 5% significance level because the interval is wrong 5% of the time. In general, confidence level C leads to a test at significance level a 1-C.

Explanation / Answer

Answer:

Without actually computing the 96% confidence interval using -3.587%, can you say
that -2.8% is inside or outside of the 96% confidence interval? Why?

-2.8% is inside of the 96% confidence interval.

96% CI wider than 95% CI.

We know that 95% of the values falls between ( mean-2sd, mean+2sd).

-2.8 falls between ( mean-2sd, mean+2sd).

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