Question

To create a confidence interval from a bootstrap distribution unsung percentiles, we keep the middle values and chop off a certain percent from each tail. Indicate what percent of values must be chopped off from each tail for each confidence level given.
(a) 95%

(b) 90%

Answer 1

Answer:

The correct answer to the following question will be "90% = 5%" and "95% = 2.5%".

Step-by-step explanation:

The given levels are:

90% and 95%

(a)...

At 90%, we get

⇒ $1-\alpha$ = $0.90$

then,

⇒ $\alpha = 0.10$

⇒ $\frac{\alpha }{2}=0.05$ ≅ $5 \ percent$

∴ at 90% level of confidence 5% must be chopped off from each of the tail.

(b)...

At 95%, we get

⇒ $1-\alpha$ = $0.95$

then,

⇒ $\alpha = 1-0.95$ $=0.10$

⇒ $\frac{\alpha }{2} =0.025$ ≅ $2.5 \ percent$

∴ at 95% level of confidence 2.5% must be chopped off from each of the tail.