CFA Practice Question

There are 434 practice questions for this study session.

CFA Practice Question

Consider the following statements relating to sample size and confidence intervals:

I. The width of a confidence interval decreases as the sample size increases.
II. When the width of a confidence interval decreases, this is due to standard error becoming smaller.
III. More precise results are obtained when the sample size is increased.

Which is true?
A. II and III
B. I and III
C. I, II and III
Explanation: The following statements relate to sample size and confidence intervals:
  • The width of a confidence interval decreases as the sample size increases.
  • When width of a confidence interval decreases, this is due to standard error becoming smaller.
  • More precise results are obtained when the sample size is increased.

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