Answer to Question #235518 in Statistics and Probability for blossomqt

Question

What is the effect of having different levels of confidence in estimation of population mean?

Answer 1

Solution:

The confidence level refers to the long-term success rate of the method, that is, how often this type of interval will capture the parameter of interest. A specific confidence interval gives a range of plausible values for the parameter of interest.

Now, if we choose different levels of confidence like 90% and 95%, it means we are 90% and 95% confident respectively that our population mean will lie in these obtained confidence intervals.

The greater the level of confidence, the more confident we are that our population mean will lie into it.