Question

Pick one or two below to answer.

1.Should companies use the same confidence level each time that a confidence interval is determined, or should the level change based on situations? If it changes based on situations, what type of situations might call for higher confidence levels?

4. What do you think is a good confidence level and why?

6. Consider another student's strategy for this problem, and comment on the accuracy of this strategy. Also, consider increasing the number in the sample, and comment on how that might impact the results.

7. Assume that about 10% of the widgets were defective. Would the different sampling strategies described by other students result in different

Answer 1

1.Sol:

The decision for the confidence level % depends and changes from case to case. For example In medical area, where we cannot afford to have a minor mistake in any test as it could cost a life of a person, the doctors might even need 99.9% confidence interval for a test maybe for a drug.

Sometimes there may be serious consequences of each alternative, so some compromises or weighing priorities may be necessary.Sometimes different stakeholders have different interests that compete

Ultimately its about the various kind of errors - Type I error and Type II error which one is more dangerous to occur than the other. The confidence levels are determined on these factors.

As per HomeworkLib policy we need to slove one question per post, please post the remaining question in another post.