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

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

Explanation:

The given levels are:

90% and 95%

(a)...

At 90%, we get

⇒
`1-\alpha` =
`0.90`

then,

⇒
`\alpha = 0.10`

⇒
`(\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`

⇒
`(\alpha )/(2) =0.025` ≅
`2.5 \ percent`

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