- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 5. Sampling and Estimation
- Subject 5. Confidence Intervals for the Population Mean and Selection of Sample Size
CFA Practice Question
As sample size increases, ______
B. degrees of freedom decrease.
C. confidence interval width increases.
A. critical values for t decrease.
B. degrees of freedom decrease.
C. confidence interval width increases.
Correct Answer: A
As sample size increases, degrees of freedom increase and critical values for t decrease. Thus, the amount added to or subtracted from the sample mean to create the confidence interval will decrease. Therefore, confidence interval width will decrease.
User Contributed Comments 3
| User | Comment |
|---|---|
| Yurik74 | What are critical values? |
| benji1983 | I think the critical values can be found from the t-distribution table. |
| EminYus | process of elimination..you know B is false because as sample size increase, so does DF and you know C is false because is N increase, the width decreases |