When a firm manager uses a parameter estimate and its standard error to construct an upper and lower bound on the true value of

Question

ser-zykov [4K]

2 years ago

6

When a firm manager uses a parameter estimate and its standard error to construct an upper and lower bound on the true value of

the parameter, that manager is constructing?

Business

1 answer:

ohaa [14] · Answer 1 · 2023-07-23T17:57:20+03:00

The fact that the firm manager is using a parameter estimate standard error to construct an upper and lower bound on the true value of the parameter means that they are constructing a confidence interval.

<h3>What is a confidence interval?</h3>

A confidence interval refers to a range that it is believed that a population parameter will be located in based on varying degrees of confidence.

To construct one, the parameter estimate and its standard error are used. They help to them determine the lower and upper bounds of the range that is then called a confidence interval.

Find out more on the confidence interval at brainly.com/question/14825274

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