- A 95% confidence interval for the mean income of shop assistants in a certain city is found to be (£12,000, £15,000). Explain briefly what this means. Would a 99% confidence interval be better than a 95% one? Justify your answer. ANS – It means that there is 95% probability that the value of the parameter i.e. individual incomes of different shop assistants shall lie within the range of £12,000 to £15,000. Yes, 99% confidence level is better than a 95% one as it increases the probability of the incomes of different shop assistants to lie within the defined ...
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