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Explain methods of narrow the confidence interval

You are a data analyst with TeckWorld, a multinational company dealing in hardware and software products. The VP of the company has asked you to obtain forecasts of next year's inflation rate from 30 economists. Based on their forecasts you have calculated a confidence interval of 1.8 percent to 4.5 percent. The VP wants to know if you can narrow the confidence interval. If you can't narrow the confidence interval, specify at least two reasons and if you can narrow it, identify two methods that you can employ for the purpose. Explain how the methods would narrow the confidence interval.

Provide a statement of clarification, providing a point of view with rationale, challenging a point of discussion, or drawing a relationship between one or more points of the discussion.

Justify ideas and responses by using appropriate examples and references.

Solution Preview

First, confidence interval aids in predicting or estimating the conditions of a point estimator such as the sample or population mean.

Second, the confidence interval communicates how confident (confidence level) the ...

Solution Summary

The solution explains methods of narrow with confidence intervals. A statement of clarification, providing a point of view with rationale is provided.