Dante Development Corporation is considering bidding on a contract for a new office building complex. Figure 4.17 shows the decision tree prepared by one of Dante’s analysts. At node 1,….
How does the percentage captured by the true mean change?
Open the confidence. jsl script, and explore what happens to the width of confidence intervals as the sample size and confidence level are changed.
(a) Use different values for the sample size (that is, 5, 10, 50, and 100). What happens to the widths of the confidence intervals as the sample size changes?
(b) Change the confidence intervals (the confidence level) to different values (that is, 0.8, 0.9, and 0.99). What happens to the widths of the confidence intervals as the confidence level changes? How does the percentage captured by the true mean change? Conversely, how does this impact the number of times the intervals miss the true mean?
(c) Open the Confidence Intervals for the Population Mean teaching module from Help > Sample Data > Teaching Scripts > Interactive Teaching Modules. Repeat steps a and b above. For this exercise, the process variable is IQ, the population mean is 100, and the standard deviation is 15.