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:

Dictator Games

A type of economic experiment where one participant (the "dictator") determines how to split an endowment between themselves and another participant, with no repercussions or rewards for their choice.

Ultimatum Games

A game in experimental economics, where a proposer has to decide how to divide a certain amount of money with a responder, who can accept or reject the offer.

Time Inconsistency

The tendency of people to change their plans about future actions due to a preference for immediate gratification over long-term benefits.

Self-Control Problems

Issues related to an individual's difficulty in exercising restraint or choosing long-term benefits over short-term gratification.