Rajesh calculated 95% confidence level. What does he mean by that?
(A) He can be 95% confident that his sample will include the population parameter.
(B) He can be 95% confused that his sample will include the population parameter.
(C) He can be 5% confident that his sample will not include the population parameter.
(D) He can be 5% confident that his sample will include the population parameter.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A) and (C) only
$\text{A 95% confidence level means that in repeated sampling,}$
$\text{about }95\%\text{ of the confidence intervals constructed will contain the true population parameter.}$
$\text{Hence there is }5\%\text{ probability that the interval will not contain the parameter.}$
$(A)\;\text{True.}$
$\text{Sample interval includes the population parameter with }95\%\text{ confidence.}$
$(C)\;\text{True.}$
$\text{Equivalently, there is }5\%\text{ chance that it does not include the parameter.}$
$(B)\;\text{False.}$
$(D)\;\text{False.}$
$\text{Correct statements: (A) and (C).}$