Suppose You Have Obtained a Confidence Interval for μ,But Wish

question 10

Multiple Choice

Suppose you have obtained a confidence interval for μ,but wish to obtain a greater degree of precision.Which of the following would result in a narrower confidence interval?
I.Increasing the sample size while keeping the confidence level fixed
II.Decreasing the sample size while keeping the confidence level fixed
III.Increasing the confidence level while keeping the sample size fixed
IV.Decreasing the confidence level while keeping the sample size fixed

• A)I,III
• B)III,IV
• C)II,III
• D)II,IV
• E)I,IV

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (or standard) variable overhead based on activity levels.

Favorable

A term used in accounting and finance to describe outcomes or variances that are better than anticipated, indicating a positive performance against the budget or forecast.

Unfavorable

A term used to describe a variance or outcome that results in a worse financial position than expected or budgeted.

Labor Rate Variance

The difference between the actual labor costs incurred and the expected (or standard) labor costs, often due to paying a higher or lower wage rate than planned.