Final answer:
Confidence intervals provide an estimated range of values and have limits that represent the lower and upper bounds. The width of the confidence interval can vary depending on the chosen confidence level. Increasing the confidence level widens the interval, while decreasing it narrows the interval.
Step-by-step explanation:
Confidence intervals are used in decision making to estimate the range of values within which the true parameter of interest lies. The limits of the confidence interval represent the lower and upper bounds of this range. A wider confidence interval indicates less precision and more uncertainty, while a narrower confidence interval indicates more precision and less uncertainty.
For example, a 95 percent confidence interval will typically be wider than a 99 percent confidence interval because the higher confidence level requires a larger margin of error and therefore a wider interval.
Summary: Increasing the confidence level leads to wider confidence intervals, while decreasing the confidence level leads to narrower confidence intervals.