Description
Suppose we construct a 90% confidence interval for a mean. This is equivalent to a two-tailed hypothesis test with _________ level of significance.
1. 10%
2. 1%
3. 5%
4. 20%
Explanation & Answer
Answer 3 5%
If we have a 90% confidence interval, then the probability of error is 10% in total but could be greater than our interval maximum l or smaller than our interval minimum - we allow 5% error in either direction
(notice we can also write our intervals as 10 plus or minus 1.7 , for instance - indicating it could be more or less than our estimate of the mean)
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