CFA Level 1 Exam: Impact of Confidence Level on Sample Size

Impact of Confidence Level on Sample Size

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Question

If the level of confidence is lowered from 95% to 90%, but the allowable error and the standard deviation remain the same, what happens to the required sample size?

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Explanations

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A. B. C. D.

B

This is related to the degree or confidence and the maximum error allowed. If you want to have a lower degree of confidence, you can have a smaller sample size

(given that the standard deviation is constant). If you want 100% confidence, you want to use the whole population as your sample.

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