Question 596060: Should companies use the same confidence interval each time a confidence interval is determined or should the level change based on situations? If it changes based on situations, what type of situations might call for higher confidence levels?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! Should companies use the same confidence interval each time a confidence interval is determined or should the level change based on situations? If it changes based on situations, what type of situations might call for higher confidence levels?
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The more dangerous it would be to reject Ho, the more it
is wise to increase the confidence level.
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Ho: if the mean of sales is not at least greater than or equal to "x" over the
next six months, we will declare bankruptsy.
Cheers,
Stan H.
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