The confidence interval for the predicted value of Y
A)is a measure of the likelihood that the prediction interval will not contain the actual cost.
B)is constructed by multiplying the t-statistic times the standard error.
C)can only be computed with 95 percent confidence.
D)all of the above.

Question

Quizplus · Accepted Answer

The confidence interval for the predicted value of Y is indeed constructed by multiplying the t-statistic (which is determined based on the desired level of confidence and the degrees of freedom) by the standard error of the estimate. This process helps in estimating the range within which the true value of Y is expected to fall with a certain level of confidence.

The Confidence Interval for the Predicted Value of Y