CFA Practice Question

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CFA Practice Question

As sample size 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 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
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