When Increasing the Level of Confidence from 95% to 99

question 24

Multiple Choice

When increasing the level of confidence from 95% to 99%, we:

• A)lose confidence but gain precision.
• B)lose precision but gain confidence that our answer interval is accurate.
• C)lose precision and lose confidence that our answer interval is accurate.
• D)none of the above.

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Definitions:

Satisfaction Guarantee

A promise or assurance given by a company that a customer will be pleased with a product or service, or a refund or replacement will be offered.

Strategic Point

A critical factor or position within a strategic plan that can significantly influence the success or failure of said plan.

Nonmonetary Costs

Costs associated with a purchase that are not financial, such as time spent, effort, and emotional stress.

Opportunity Costs

The value of the best alternative forgone when a decision is made to pursue a particular action or investment.