| Tag | Value |
|---|---|
| file | Inferential_Statistics_vufsw-confidence_intervals-1168-en_vufsw-confidence_intervals-1168-en |
| name | vufsw-confidence intervals-1168-en |
| section | inferential statistics/confidence intervals |
| type | schoice |
| solution | TRUE, FALSE, FALSE, FALSE |
| Type | conceptual |
| Program | NA |
| Language | English |
| Level | statistical literacy |
The message below (shortened) appeared on NU.nl (April 4, 2013).
The bonuses that employees receive are much higher in one sector than in the other sector. The average bonus was more than 2.000 euros on an annual basis. This is shown by sample data from Statistics Netherlands (CBS). The bulk of the bonuses is still given in the financial services sector (including banks, insurance companies and pension funds), where employees received an average bonus of 7.100 per year.
Employees can count on the lowest bonus in catering, health care and education. In the hotel and catering industry, the bonus is on average 559 euros, in healthcare 655 euros and education 774 euros.
A VU teacher calculates both the 95% and 99% confidence interval of the average bonus in the education sector. Which of the following statements is/are correct?
I. The point estimate (774 euros) used is the same in both confidence intervals.
Only statement I is correct. The point estimate is the same. A 99% confidence interval is wider. In other words, one can say that it is harder to fall out of the CI in the case of 99%.