What is the confidence interval for the predicted value of Y?
A)It is constructed by multiplying the t-statistic times the standard error.
B)It is a measure of the likelihood that the prediction interval will not contain the actual cost.
C)It provides a 95 percent confidence level.
D)It is constructed by deciding the t-statistic times the standard error.

Question

Quizplus · Accepted Answer

The confidence interval for the predicted value of Y is constructed by multiplying the t-statistic by the standard error, which provides a range within which we can be confident that the true value of Y lies.

What Is the Confidence Interval for the Predicted Value of Y