Answer:
a
[tex]\frac{\alpha }{2} = 2.5 \%[/tex]
b
[tex]N = 25[/tex]
Step-by-step explanation:
From the question we are told that
The number of bootstrap samples is n = 1000
From the question we are told the confidence level is 95% , hence the level of significance is
[tex]\alpha = (100 - 95 ) \%[/tex]
=> [tex]\alpha = 0.05[/tex]
Generally the percentage of values that must be chopped off from each tail for a 95% confidence interval is mathematically evaluated as
[tex]\frac{\alpha }{2} = \frac{0.05}{2} = 0.025 = 2.5 \%[/tex]
=> [tex]\frac{\alpha }{2} = 2.5 \%[/tex]
Generally the number of the bootstrap sample that must be chopped off to produce a 95% confidence interval is
[tex]N = 1000 * \frac{\alpha }{2}[/tex]
=> [tex]N = 1000 * 0.025[/tex]
=> [tex]N = 25[/tex]
