What occurs to the interval estimate as the sample size increases?

Disable ads (and more) with a membership for a one time $4.99 payment

Prepare for the UCF QMB3200 Final Exam with targeted flashcards and multiple-choice questions. Each question is designed to enhance your understanding, with hints and detailed explanations provided. Get exam-ready now!

As the sample size increases, the interval estimate narrows due to the relationship between sample size and the standard error of the estimate. In statistical terms, the standard error decreases as the sample size increases, as it is calculated by dividing the standard deviation by the square root of the sample size.

This reduction in standard error means that the confidence interval, which is typically constructed using the standard error, will also decrease in width. This reflects increased precision in estimating the population parameter, as a larger sample provides more reliable information about the population.

Thus, a larger sample allows us to make more precise estimates, leading to a narrower interval estimate, which makes option B the correct choice.