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Rajesh calculated 95% confidence level. What does he mean by that?

(A) He can be 95% confident that his sample will include the population parameter.

(B) He can be 95% confused that his sample will include the population parameter.

(C) He can be 5% confident that his sample will not include the population parameter.

(D) He can be 5% confident that his sample will include the population parameter.

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 1

When Rajesh says he has a 95% confidence level, this means he is 95% confident that the calculated confidence interval (the range from the sample) captures the true population parameter.


Examining option (A): "He can be 95% confident that his sample will include the population parameter."

This statement is correct. A 95% confidence level means there is a 95% probability that the confidence interval calculated from the sample contains the true population parameter.


Examining option (B): "He can be 95% confused that his sample will include the population parameter."

This statement is incorrect. The term "confused" has no mathematical meaning in statistics. The correct term is "confident."


Examining option (C): "He can be 5% confident that his sample will not include the population parameter."

This statement is correct. If there is 95% confidence that the interval will include the parameter, then there is (100%−95%)=5%(100\% - 95\%) = 5\% confidence that it will not include it. This represents the complement of statement (A).


Examining option (D): "He can be 5% confident that his sample will include the population parameter."

This statement is incorrect. This contradicts the 95% confidence level stated. The confidence that the interval includes the parameter is 95%, not 5%.


Statements (A) and (C) are both correct, as they represent complementary probabilities:

95%+5%=100%95\% + 5\% = 100\%

Therefore, the answer is: Options (A) and (C)

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