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If I were to construct intervals using the same data set and point estimators from a...

If I were to construct intervals using the same data set and point estimators from a normal distribution, which of these intervals would have the greatest width? Why did you choose that one?

a) A 95% confidence interval for the mean μ

b) A 99% confidence interval for the mean μ

c) A 95% prediction interval for a future observation

d) A 99 % prediction interval for a future observation

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Answer #1

The answer is:

A prediction interval is always wider than a confidence interval. So we will also choose a production interval for greater width.

Also, the critical value at a 99% confidence interval is higher than a 95% confidence interval. Hence option d is correct based on the criteria.

Let me know in the comments if anything is not clear. I will reply ASAP! Please do upvote if satisfied!

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