The margin of error for a prediction interval is larger than the corresponding value for confidence intervals because ________.
A)the distribution of the random variable is a standard normal distribution
B)evaluating a true proportion requires a larger margin of error
C)the variability of the new observation around the mean is accounted for
D)this new value is from the same population

Question

Quizplus · Accepted Answer

Prediction intervals involve estimating the variability of a new observation, while confidence intervals involve estimating the variability of the mean or proportion. Therefore, the margin of error for a prediction interval must account for the additional variability of the new observation around the mean.

The Margin of Error for a Prediction Interval Is Larger