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Finding the nominal coverage rate for CI

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Students in the industrial statistics lab at ASU calculate a lot of confidence intervals on mu. Suppose all these CIs are independent of each other. Consider the next one thousand 95% CIs that will be calculated. How many of these CIs do you expect to capture the true value of mu? What is the probability that between 930 and 970 of these intervals contain the true value of mu?

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Solution Summary

Suppose calculated CIs are independent of each other. Consider the ext one thousand 95% CIs that will be calculated. How many of these CIs do you expect to capture the true value of mu? Here we show how such coverage rate can be found

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No. of CIs you expect to capture the true value of mu = (0.95)*1000 = 950

Let X be the variable " The number of interval ...

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